1146 EXTENSIONS OF REMARKS January 16, 1969

H.R. 3977. A blll for the relief of Falesca H.R. 3988. A blll for the relief of Lucia By Mr. SIKES: Knight; to the Committee on the Judiciary. Tortorella; to the Committee on the Judi­ H.R. 4000. A bill for the relief of Do Sung H.R. 3978. A bill for the relief of Maria ciary. Deuk; to the Committee on the Judiciary. Pinazzi; to the Committee on the Judiciary, · By Mr. RHODES: By Mr. TIERNAN: By Mr. POLLOCK: H.R. 3989. A bill for the relief of Vladko H.R. 4001. A blll for the relief of Anna Elsa H.R. 3979. A bill to authorize the Secre­ Dimitrov Denev; to the Committee on the Bayer; to the Committee on the Judiciary. tary of the Interior to consider a petition Judiciary. H.R. 4002. A bill for the relief of Chu Yi for reinstatement of certain oil and gas By Mr. ROGERS of Florida (by re­ Chang; to the Committee on the Judiciary. leases; to the Committee on Interior and quest): H.R. 4003. A bill for the relief of Jose Marta Insular Affairs. H.R. 3990. A bill for the relief of Harvey Sousa Costa; to the Committee on the Ju­ By Mr. PURCELL: E. Ward; to the Committee on the Judiciary. diciary. H.R. 3980. A bill for the relief of Reuben­ By Mr. ROSENTHAL: H.R. 4004. A bill for the relief of Giovanni stein D. Landreth; to the Committee on the H.R. 3991. A bill for the relief of Ben Zion Finocchiaro; to the Committee on the Ju­ Judiciary. Cohen; to the Committee on the Judiciary. diciary. H.R. 3981. A bill for the relief of Thaddeus H.R. 3992. A bill for the relief of Lea Laza.r; H.R. 4005. A bill for the relief of Nan L. Michalski; to the Committee on the Judi­ to the Committee on the Judiciary. Wong; to the Committee on the Judiciary. ciary. By Mr.RYAN: By Mr. WIDNALL: H.R. 3982. A bill for the relief of Cleopatra H.R. 3993. A bill for the relief of Ma.rte H.R. 4006. A bill for the relief of Giacomo A. Palmejar; to the Committee on the Judi­ Denis Champana; to the Committee on the Famularo; to the Committee on the Ju­ ciary. Judiciary. diciary. H.R. 3983. A bill for the relief of Earl H.R. 3994. A bill for the relief of Alice Mu­ H.R. 4007. A bill for the relief of Hiroko F. Werner; to the Committee on the Judi­ riel Job; to the Committee on the Judiciary. Saito; to the Committee on the Judiciary. ciary. H.R. 3995. A bill for the relief of Albina A. H.R. 4008. A bill for the relief of Arpi L . By Mr. REINECKE: P arisi; to the Committee on the Judiciary. Vartian; to the Committee on the Judiciary. H.R. 3984. A bill for the relief of Arnand By Mr. ST. ONGE: By Mr. WILLIAMS: Prakash Agarwal; to the Committee on the H .R. 3996. A bill for the relief of Giuseppe H.R. 4009. A bill for the relief of Doctor Judiciary. De Santis; to the Committee on the Judiciary. Abbas Rahnema; to the Committee on t h e H.R. 3985. A bill for the relief of Marwan H.R. 3997. A bill for the relief of Giacomo Judiciary. Khaled Kamalmaz; to the Committee on the Ferrara, wife, Caterina Ferrara, and daughter, By Mr. CHARLES H. WILSON: Judiciary. Vincenza Ferrara; to the Cammittee on the H.R. 4010. A bill for the relief of Abe and H.R. 3986. A bill for the relief of Sook Judiciary. Yetta Borczuk; to the Committee on the Myung Pak; to the Committee on the Ju­ H.R. 3998. A bill for the relief of Mario Judiciary. diciary. Gagliardi; to the Oommittee on the Judiciary. By Mr. YOUNG: H.R. 3987. A bill for the relief of Adele H.R. 3999. A bill for the relief of Pietro H.R. 4011. A bill for the relief of Mr. and Romanelli; to the Committee on the Judi­ Giordano; to the Committee on the Judi­ Mrs. Gino Ricci; to the Committee on the ciary. ciary. Judiciary.

EXTENSIONS OF REMARKS AIR AND WATER POLLUTION cannot do the job alone. An interdepend­ partial cost of facilities and equipment to MEASURES ent, coordinated approach to the problem control air pollution or water pollution is required. which have been approved by the appro­ The three measures which I am intro­ priate State agencies. HON. DONALD RUMSFELD ducing today were also introduced dur­ OF ing the 90th Congress. They are not a IN THE HOUSE OF REPRESENTATIVES total solution. They could, however, pro­ vide a beginning. These measures will Thursday, January 16, 1969 THE LATE JUDGE FREDERICK encourage the private sector to play a OSCAR BOWMAN Mr. RUMSFELD. Mr. Speaker, for more substantial role in helping the Na­ centuries the people living on this earth tion reclaim and cleanse the environ­ did not have to worry about the two basic ment in which we live. HON. B. EVERETT necessities of life-air and water. Today, The first proposal authorizes an incen­ OF NORTH CAROLINA an adequate supply of clean water is an tive tax credit against the cost of con­ IN THE SENATE OF THE important national concern. The pollu­ structing air and water pollution control tion of the air we breath is on the verge facilities. Thursday, January 16, 1969 of constituting a national health hazard. The second would expand the Oil Pol­ Mr. JORDAN of North Carolina. Mr. The U.S. Congress, in my judgment, has lution Act to impose stronger penalties President, ever so often there passes failed to confront these absolutely vital for the dumping of oil in our national across the scene a man who has lived problems adequately. We have not waterways. so fully, so richly, and so well in the true worked out efiective solutions to control The third will prohibit dumping cer­ sense of those words that the end of and eliminate the growing air and water tain materials into navigable waters of that life warrants the attention of even pollution we have in our country. Pol­ the United States by the Federal Gov­ those not privileged to have known him. luted air and water need not and cannot ernment. Such a man was Frederick Oscar be allowed to remain the hallmarks of It is particularly important that con­ Bowman, who died a few weeks ago in our society. sideration be given to the legislation North Carolina. The air pollution problem, most ex­ which deals with the dumping of oil and I knew him and his wife Sally as dear perts say, wil' worsen before it improves. other matter into the Nation's water­ friends, admired his legal talent, but During the next decade it is expected that ways. One of the bills amends the Oil Pol­ most of all deeply respected him for his the number of motor vehicles using our lution Act of 1924 by empowering the devotion to his family and to people and roads and highways will increase from Secretary of the Interior and appropriate worthwhile causes. 90 million to 120 million. The need for Federal prosecuting agencies to take ac­ An eloquent testimonial to the sort of electrical power will more than double, tion against those responsible for oil pol­ man he was is contained in an article and much of that additional power will lution. A single inst~nce of oil dumping by former University of North Carolina be generated by combustible fuels. Thus, can adversely afiect wide areas bordering Chancellor Robert Burton House ap­ we can expect that the atmospheric prob­ on our Nation's lakes. This legislation pearing in the Chapel Hill Weekly short­ lems we face will increase severely dur­ provides ·severe penalties, but certainly ly after his death, and I ask consent at ing the next decade. no more severe than the consequences this point that the full text of that Programs to halt the polluting of the caused by the dumping. tribute be printed in the CONGRESSIONAL air and waterways must be pursued The Pollution Abatement Incentive Act RECORD as a part of my remarks. vigorously. It is clear that Government of 1969 provides for tax credits for the There being no objection, the article January 16, 1969 EXTENSIONS OF REMARKS . 1147 was ordered be printed in the RECORD Mall. The occasion was the ground­ dealers or agents. He has always cut through to to the artist, often young and little known, as follows: breaking ceremony fo:r the Joseph H. and has expressed his own vigorous confi­ JUDGE BOWMAN Hirshhorn Museum and Sculpture Gar­ dence, and essential kindliness, overlaid by . (By Robert B. House) den. It was an impressi'V'e ceremony pre­ his sometime bristling exterior. In this world Frederick Oscar Bowman was known sided over by S. Dillon Ripley, our very of art, as John Rothenstein has described it, through the length and breadth of North genial, capable, and highly respected Di­ "where denigration and division, faint praise Carolina as Judge Bowman, not only for his rector of the Smithsonian. The principal and rivalry are usually so conspicuous", Jo­ sagacity as a lawyer, and his artistry in coun­ speakers were Mr. Joseph H. Hirshhorn seph Hirshhorn himself has remarkably few seling the bottlers and druggists of the State and the President of the United States, detractors. For Mr. Hirshhorn to have given and his invaluable help in developing the his collection to the nation is a genuine act Division of Health Affairs at the University, who were eloquently and appropriately of faith. For us to be honored here at this but for his sound judgment of the values introduced by other prominent citizens gathering today by the Johnson family is a. that go deeper into life than the legal, the including Chief Justice Warren of the mark of the faith that they too have ex­ economic, and the political. Born at the foot Supreme Court. pressed all their lives in this traditional of Mt. Mitchell, he seemed to take that great Because of what Mr. Dillon Ripley said setting. eminence as a: watch-tower from which to in his opening remarks and the eloquent When Gordon Bunshaft and I "t:alked about observe the full tide of people and events in responses by the principal donor and a building for this site, I reminded him that this commonwealth for l).is full life of 77 the wholesome insights by the President, the varied, elegant small buildings along years. this side of the Mall, silhouetted against a But, while he was a shrewd observer, he I have deemed it in the public interest backdrop of monolithic government building was also a powerful participator. He asso­ to have the statements of this ceremony behind to the .south on the other side of ciated himself with things that stirred with placed in the CONGRESSIONAL RECORD so Independence Avenue, are in a certain scale, life; e.g., the rilse of the bottling industry to it could be made available to the Mem­ like tiny figures in a Bayeux tapestry, each a great business associatlon, the rise of drug­ bers of Congress who may want to share different, each representing an era; the tur­ gists to a high moral profession, the rise of it with their constituency and so this rets of the original building, the castellated this University, not only in Health Atiaim, event could be properly and appropri­ towers, banners :flaunting of the exposition but in all that makes it the sparkplug of building, the cool austerity of the Freer. To education in the State and nation . .Educa­ ately recorded in the CONGRESSIONAL create delight, to match the harmonious ticm was in his blood. 'He was born and edu­ RECORD, an official Government docu­ cacophony of the other buildings, I asked cated in his father's academy in Bakersville, ment. him if he could not create something equally he went on to graduate from that unique So that this significant event, this ditierent to all the others. I suggested a bal­ school of mountain schoolls, Berea in Ken­ meaningful gift, and the eloquent re­ loon ascension. Mr. Bunshaft has indeed pro­ tucky, and to graduate from the Law School sponse by national leaders may be made vided us with something brilliantly differ­ of this University. Law was in his blood. In a part of the permanent RECORD, I ask ent. rt will be gay and delightful, and cer­ addition to his counseling two tremendous tainly in today's parlance, it is not "square." buSiness and profeslsional associations, he permission for the statements of the par­ This elegant museum with its accompanying conducted a modest law office that was par­ ticipants to be included herewith: sculpture garden, stretching across the Mall ticularly kind and helpful to the poor and REMARKS BYS. DILLON RIPLEY, SECRETARY OF to express the L'Enfant-planned cross-Mall distressed. THE SMITHSONIAN INSTITUTION, AT GROUND­ axis will be a perfect foil, one of a pair, to He knew and delighted in every variety of BREAKING CEREMONIES FOR THE JOSEPH H. match the National Gallery. History has been person and every level of occupation in the HIRSHHORN MUSEUM AND SCULPTURE GAR­ served, a garden will be created, and the commonwealth. He was interested in people, DEN, JANUARY 8, AT WASHINGTON, D.C. vision of architects and planners of the past he loved them; he awakened interest in peo­ In July, 1848, Joseph Henry, first Secretary will become reality. ple, and they loved him and delighted in of the Smithsonian, surveying the newly Art today, like museums, represents far him. He was said to be the best political created Smithsonian park, wrote in his pock­ more than legacies of defunct cultures to be prognosticator in the State because he knew et diary: mused over in one's spare time. Today we the emotions and the motives of the voting "The idea has occurred to me that the Mall know that we must know more of everything people. might be made one of the most delightful in order to be able to formulate some per­ He was a loyal and devoted son and brother places in the United States by filllng up the sonal synthesis, some approach to life, in­ in a large family of sisters and brothers of canal, planting the ground with clumps of deed in order to be able to survive. In 1780, whom eleven survive him with distinction in native ornamental trees and making a broad in the beginnings of our republic, John North Carolina, Kentucky, Maine, New Jer­ gravel road entering around the whole, ex­ Adams wrote to his wife; sey, and Colorado. He was happy in his mar­ tending from the foot of Capitol Hill to the "I must study politics and war, that my riage to Sallie Sanders of Johnsto~ County. Monument. This would be one of the finest sons may have liberty to study mathematics In them, mountain joined with plain, ~est 'drives' in the world." and philosophy, natural history and naval with east, ruggedness with beauty and grace. Can you hear the clopping of the hooves? architecture, navigation, commerce and agri­ They evolved a beautiful healing of a schism Can you visualize, through all the years, the culture, in order to give their children a that had long separated east and west in later plans of Downing and Olmstead, and right to study painting, poetry, music, archi­ North Carolina. He was happy in hils son now of Owings; you perceive through the tecture, statuary, tapestry and porcelain." and daughter. I speak with assurance on this panorama of time itself, vestiges of delight? That's the way it used to be. Shirtsleeves point, for it was given to me to be chautieur, How right Henry was, and how right Mrs. to shirtsleeves in three generations. Let us companion, and listener to them through the labor at war or commerce so that our children schooling, car-pooling, tooth-straightening, Johnson's beautification plans have been! We cannot live with magnificence and gran­ can reflect our basic urge to culture by in- , and scouting period of their childhood, along dulging in the pleasures of cultivated tasks with my own children. deur alone. Let the Mall be an inspiring And in his last days of pain and !sickness heartland for all America but let it never be at leisure supported by the wealth or security he was happy in himself and an inspiration sterile and dull. It must be lively, vigorous, we have created for them. Today in the re­ to those about him in his granite patience varied, and, yes, restful too, and above all, finements of the technological world which is and fortitude. He was a mountain peak, beautiful. upon us, I submit that this is true no more. sturdy in storm, benign in sunshine. The Smithsonian Institution has been Narrow specialization is not appropriate to charged for many years by the Congress with the scene. To survive one must be skilled not planning and initiating a kind of Tate Gal­ only in "politics and war", but also in poetry, lery, a sort of Luxembourg Gallery, t-o act music and mathematics, lest the urgent as a foil for the magnificent Mellon collec­ stresses of our environment deafen us to the GROUNDBREAKING CEREMONIES tions. As the National Gallery arose, and now very meaning of life itself. We risk being de­ FOR THE JOSEPH H. HIRSHHORN is to be added to through more Mellon munif­ humanized in one generation, so that every MUSEUM AND SCULPTURE GAR­ icence, it has become more than ever obvious generation must be all things to itself. We can DEN HELD JANUARY 8 AT THE that if this Institution is to live up to that no more afford to ignore art than we can SMITHSONIAN MALL charge, it should be responsible in two areas, afford to ignore technology. We must be a panoramic history of American art, now trained for life at all levels of integration. formulating itself in the National Collection In this setting th~re is more than mere HON. FRED SCHWENGEL of Fine Arts, so beautifully housed in the symbolism to the Juxtaposition of our build­ OF IOWA Old Patent Office, and a continuing survey ings, the greatest library in the nation next of the trends of contemporary art, both to the Congress, buildings representing vast IN THE HOUSE OF REPRESENTATIVES American as well as foreign. areas of policy and decision making next to Thursday, January 16, 1969 No private individual has done the latter museums, offices next to laboratories and all more splendidly than Joseph H. Hirshhorn the busy life itself mirrored in the pools of Mr. SCHWENGEL. Mr. Speaker, on whose sculpture collection alone ls incom­ the Mall, the "finest drive in the world" a January 9 I participated along with parable. Few men that I know have been, as place to be made a delight by the very many prominent citizens in an impor­ a collector, better friends with artists them­ necessities of existence. No building presently tant ceremony held at the Smithsonian selves, for he has never buffered himself with planned could add more to the spirit of the 1148 EXTENSIONS OF REMARKS January 16, 1969 place than this one, a fortunate and humane museum in Washington. As head of the Na­ even more enthusiastic about the man who ts partnership of Joseph Hirshhorn, and our tion's a.rt programs, he has earned the respect its father, Joseph Hirshhorn. enlightened government. and gratitude of all our citizens for his un­ They told me of its magnificence. They stinting efforts in behalf of the arts and the told me of its size and they told me of the REMARKS BY JOSEPH H. HIRSHHORN wise manner in which his programs were ac­ possibility, just the bare possibllity that we Mr. President, Mrs. Johnson, Dr. Ripley, complished. He has destroyed the myth that might be able to bring it to Washington. Chief Justice Warren, Congressmen, Hon­ government in art means censorship and bu­ It was almost too big to give any encour­ ored Guests, Friends, Loved Ones, Ladies and reaucracy. agement--except when I was a little boy Gentlemen: There are special occasions that My friend, Justice Abe Fortas, that wise, selling magazines and papers in the streets celebrate a lifetime of effort and commit­ good and gentle man, did much to shape my of my home town-I never forgot the paper ment. Even when they are formalized to fit decision. His lively interest in the arts and and the crusading editor had a slogan. He the pattern of ceremony, these are the golden his sympathy for what we are trying to ac­ said, "Minnows are safe. I am out after moments that have the greatest significance. complish make him a particularly valued and whale." They are very, very rare. Today is such an understanding friend. So, that is where we started and here is occasion for me. Mr. James Bradley, assistant secretary of where we are. I have spent the greater part of my life the Smithsonian Institution, who helped I want to say publicly that I share Mrs. with a.rt, with artists, and as a collector of work out the details of our agreement, was Johnson's great respect and affection for art. When I began to collect, it was con­ an angel throughout: My attorney and good Joseph and Mrs. Hirshhorn. This splendid sidered absurd to believe that American art friend, Mr. Sam Harris, was a key person in American-an immigrant; the twelfth of could ever achieve international significance, my decision to bring my collection to Wash­ thirteen children, a half-orphan, a child of that it could ever become a vital world a.rt. ington. He worked hard to bring this about: poverty-symbolizes the breadth of oppor­ I am proud that I began by collecting Ameri­ Mr. Abram Lerner, my former curator, the tunity in our America. His story is an Amer­ can artists. I am proud that I believed in first Director of the Joseph H. Hirshhorn ican story. them and championed them and stayed with Museum. His dedication and help over many In future years, this gallery and its con­ them. I guess I felt from the beginning that years have ma.de him a cherished friend and tents will remind us not only of the man American art had an explosive energy that an invaluable associate: Mr. Gordon Bun­ and his generosity, but of the possibilities would one day affect and infiuence art all shaft of the architectural firm of Skidmore, which our land offers its people. I hope that over the world. The past twenty years have Owings and Merrlll, has designed a beauti­ Congress will show a generosity and a fore­ proved it. ful Museum building, an exciting structure sight which match Mr. Hirshhorn's-and will This is a proud day for me. I feel most that will contain an equally exciting assem­ provide, in years to come, the means to en­ fortunate that I should be here sharing this blage of art. It is my great hope that this large and develop the collection he has podium with such distinguished Americans, Museum will dedicate itself to public service, begun. to initiate the construction of a great new that it will be the Nation's showcase for the To Mr. Bunshaft and Dr. Ripley and his museum. Mrs. Hirshhorn and I are grateful widest range of contemporary artistic ex­ great staff, to the Chief Justice and his to all of you who have taken the time on a pression, that it will become involved with board, I express the Nation's gratitude. chilly day to help us celebrate this occasion. the community as well as the nation, and To Mr. Hirshhorn, on behalf of all of your It was an honor for me to give my art col­ that it will be a productive center of recrea­ countrymen, I thank you and Mrs. Hirshhorn lection to the people of the United States. tion, education, and study for all our people. once again. I think it is a small repayment for what Thank you. I shall take great pride in turning the first this great nation has done for me and others spade of earth-and in dedicating this new like me who arrived here as immigrants. I REMARKS OF THE PRESIDENT AT THE GROUND• museum to "the increase and diffusion of BREAKING CEREMONY FOR THE JOSEPH H. knowledge among men." repeat, it was an honor for me to give my Thank you. art collection to the people of the United HIRSHHORN MUSEUM AND SCULPTURE GAR­ States. I think it is small repayment for DEN, SMITHSONIAN MALL what this great nation has done for me and Dr. Ripley, Mr. and Mrs. Hirshhorn, Mr. others like me who arrived here as immi­ Chief Justice and Members of the Supreme THE NEW SOVIET THREAT AT SEA grants. Court, _the Cabinet and the Congress, Dis­ Ladies and Gentlemen, I want you to know tinguished Friends: that we Americans are a great, wonderful, Today and tomorrow are memorable days HON. HENRY M. JACKSON generous, kind people and I am proud to be­ for our capital and for this country. Tomor­ OF WASHINGTON long to the family of Americans. I was six row, we will celebrate the marvels of science IN THE SENATE OF THE UNITED STATES and the spirit of adventure. We will greet, years old, 63 years ago, when my Mother Thursday, January 16, 1969 brought me here from Latvia. I am grateful here in Washington, three voyagers who can to that Momma of mine and I hope she is describe for us sights that have never been Mr. JACKSON. Mr. President, my sen­ here in spirit. What I have accomplished here seen before by human eyes. Today, we cele­ ior colleague (Mr. MAGNUSON) is justifi­ in the United States, I could not accomplish brate the enriching power of art and the ably known as "Mr. Maritime." For over anywhere else in the world. spirit of creation. We honor a most remark­ three decades there has been no stronger I want to express my deepest thanks to able man and a most magnificent gift. President Johnson, whose interest and en­ Each of the events we commemorate in voice in the Halls of Congress, no more couragement have made this day possible. He these two days-the flight of Apollo Eight, determined advocate of a strong U.S. championed not only the creation of this and the birth of the Hirshhorn Museum­ merchant marine than my esteemed and museum, but also the ca.use of all the arts in tells us something about this country and beloved colleague. America. In my memory, he is the first Presi­ its people. We are in love with science, with In recent years he has been increas­ dent of the United States to have been so progress, with change, with adventure, with ingly concerned with the steady decline deeply concerned with our national culture, technology. Our reach into space expresses of our merchant marine, a condition that and his administration was the first to recog­ that enthusiasm and determination. We are he and I both feel is in a large part due niii'le the importance of a.rt in Arnerioan life restless, questing, deeply moved by art and and to legislate in its favor. This ls a matter symbols, that are concerned with inner to the failure of those in the executive of record. All of us who a.re concerned with things. And the establishment of this place branch of Government to recognize the the cultural heritage and future of our na­ of beauty expresses those qualities in us. American-flag :fleets' transcendental im­ tion recognize the magnificent contribution So today and tomorrow, we affirm our peo­ portance to both national security and President Johnson has made. ple's intention to voyage in both directions the American economy. The President is fortunate in having at his of human discovery: toward the outer During this period of decline, Soviet side a great, darling and charming lady. Mrs. reaches of space, and to the inner territory Russia has been steadily building · a Johnson's concern for beautifying our nation of the human heart. large, modern merchant marine :fleet and our capital made her an indispensable It gives me a great deal of pride and per­ ally to our cause. Her unique personality, sonal pleasure to be here with you today. that has catapulted that nation into a vision and lofty purpose have brought a new Pride, because I love this capital, I love challenging position among world mari­ significance to the title of "First Lady." Washington. And I am interested in any time powers. If the U.S.S.R. continues its Dr. D111on Ripley was instrumental in event that seems to make this a better place maritime growth at the· present rate, it bringing my collection to Washington. I to live and seems to improve this city. Mr. can well play the predominant role in want to pay my respects to this amiable dip­ Hirshhorn, with one handsome gift, has as­ the management of world shipping with­ lomat who conducted the entire proceeding sured that the Nation's Capital will always be in a decade or so. with exceptional grace and courtesy. It is not a center of art almost unrivalled in the Senator MAGNUSON has called atten­ easy to work out the details of a gift of such world. tion to this alarming situation in an proportions, but Dr. Ripley was persistent, To be here gives me pleasure, for other per­ cooperative and a charming seducer through­ sonal reasons. Two years ago, Mrs. Johnson article titled "The New Soviet Threat r.t out. and Lynda Bird went to Connecticut to see Sea" in the October issue of the Eagle, There are several others who deserve my the Hlrshhorn Collection. They returned to official publication of the Fraternal deepest thanks: Mr. Roger Stevens was one the , enthusiastic about this Order of Eagles. The article is well writ­ of the first to speak to me regarding a great treasure house of art--and I might say, ten, thoroughly documented, and co- . EXTENSIONS OF-REMARKS 1149 gently sums up the Soviet challenge to wen-documented 3S-page analysis titled The plUs 'a ·number of technical measures to im- both our military and economic security Soviet Drive -for Maritime Power. The an­ prove our overall maritime operations. · alysis made the following factual points: The greatness of the United States ih the at sea. It should be must reading · for 1. The Soviet merchant fleet has doubled coming decades may depend on how well every Member of Congress and for those in tonnage during the 5-'year period 1961-65. the oceans are made to serve the American in the executive branch of Government 2. By 1970, the Soviet fleet is· scheduled to people. Our nation is· no longer self-sufficient. concerned with this problem. I ask unan­ expand by another 50 percent namely from The vital ·raw materials we no longer have imous consent that Senator MAGNUSON'S 9.5 m illion t o 14 m illion tons; · at home must come across the seas. Back article be placed in the RECORD. 3. Within a single decade of sustained across t hem m u st go our exports and the aid There being no objection, the article growth at a forced pace, the Soviet has pro­ we send abroad, as well as the supplies for our military. If the United States ls to remain was ordered to be printed in the RECORD, jected itself dramatically from a position of near obscurity in ocean shipping to take its the foremost nation of the world, it must as follows: place as the sixth leading maritime nation in have the merchant ships to do these jobs. RUSSIANS ARE DETERMINED THAT THEIR MARI­ the world; This is sea power, an d we do not h ave it TIME MIGHT WILL BE No. 1 ON THE HIGH 4. In outstanding orders for dry cargo ves­ now. SEAS-THE NEW SovmT THREAT AT SEA sels, the Soviet Union is now leading all We also must recognize that what is under (By Senator WARREN G. MAGNUSON, chair- competitors, with an average figure of 2.5 mil­ the ocean may even be more important that man, senate Commerce Committee) lion deadweight tons, or 28 percent of all what is on its surface. In the significant Through the Nineteenth Century the world ships on order in this category. field of oceanography-the wealth that is in famed clipper ships sliced through the oceans What is behind this Soviet drive for mari­ the ocean-we are again allowing the Rus­ time power? .The experts at the Library of sians to out-distance us. Recently a leading of the world as a muscular young United expert made a study of our efforts in this field States merchant marine carried the products Congress list four basic reasons: 1. Foreign Aid. The Russian commitments compared with those of the Soviets and con­ of a fledgling industrial colossus to all five cluded: "Russia is clearly surpassing the continents. to the undeveloped uncommitted nations These tautly hulled ships with their swell­ around the world require additional sea­ U.S." going tonnage to carry large cargoes. The situation ls ominous and calls for ing canvases represented America's resolve to action. We cannot afford to continue playing become a leading maritime power. 2 . Increased Movement of Soviet Arma­ By the end of World War II, that dream ment Shipments. The U.S.S.R. shipments of Russian roulette at sea. was realized: The United States reigned su­ arms to North Vietnam and the shipments preme in the maritime world. The merchant to the Arab nations of the Middle East have marine, from the Murmansk run to the occupied the headlines for some time. These South Atlantic, had made a prodigious con­ shipments would not have been possible WELFARE: A FEDERAL TASK tribution to winning the war, and its post­ without the greater expansion of the Russian war future seemed assured. merchant marine. Today, less than a quarter century later, 3. The Long Supply Line to Cuba. Since HON. EDWARD P. BOLAND the United States has slipped far down the 1960, the U.S.S.R. has contributed well over OF MASSACHUSETTS ladder as a maritime power. One startling $1 billion in economic aid to Cuba. The bulk IN THE HOUSE OF REPRESENTATIVES statistic can sum up the story. In 1946, of this has been carried in cargo shipping. American ships carried 67.6 percent of our 4. The Quest for National Prestige. Soviet Thursday, January 16, 1969 foreign trade. Today, we carry but 5.6 per­ Minister of Sea Transport Victor Bakayev cent of this trade in American-flag bottoms. has boasted that "the present opposing U.S. Mr. BOLAND. Mr. Speaker, the public This is why we are suffering a balance of pay­ merchant marine is smaller in tonnage than welfare system in the United States ments deficit; if we carried 30 percent of our the Soviet fleet," and "its ships are also in­ verges on chaos. Enacted piecemeal over own trade, the problem would be eliminated. ferior to Soviet vessels in terms of quality." the past 100 years, welfare laws in the 50 If this trend continues, as it has over the The plain fact is that the Russians, as a States have grown into a snarl so com­ last 20 years, the United States merchant matter of national prestige, are determined plex that only the Federal Government marine can well disappear soon as a positive to be number one on the high seas. can untangle it. Welfare payments in national f.orce. We obviously cannot continue to ignore Our active fleet has declined from 2,332 to the Soviet maritime achievement. Because, some States-Mississippi, for example-­ fewer than 900 ships in 20 years. Only 311 of in our age of great air and space competi­ are so cruelly small that the impover­ these ships, according to the Committee of tion, a greater threat may yet be the swift ished families living there are driven American Steamship Lines, can be classified growth of Russian sea power and the long­ north to States offering payments that as modern. The rest are over-age World War term prospect that the U.S.S.R. may domi­ seem utopian in comparison. This strik­ II "rust buckets." nate world shipping within a decade or two. ing disparity in welfare payments has Let me shock you further by telling you Take our neighbor Canada. With no mer­ played a major role in the migration of what the Russians have been doing during chant navy of her own and as one of the the rural poor to our giant northern most of this period. At the end of World largest per capita importing nations, she is at War II, the Soviet merchant fleet was in­ the mercy of unstable world shipping rates. metropolises, creating teeming ghettos significant. When Stalin died in 1953, The Russians, who already have a heavy pas­ where life is characterized by despair and Russia's 500 ships totaled but 1.5 million senger and cargo trade between Montreal and degradation. tons. Then Soviet maritime policy was ac­ Leningrad, might come to dominate this area It is clear that the Federal Govern­ celerated and within five years that figure by offering Canada a seemingly attractive ment must take over the States' welfare was almost doubled. large, low-cost and permanent sea-cargo serv­ systems, establishing just and uniform From there the Russians have embarked on ice. national standards that will grant to the a policy of maritime expansion that has The Russians recognize that merchant brought them to sixth place among world ships represent crucial political and economic poor comparable living conditions no maritime powers. And what is even more instruments, as well as a mmtary arm. The matter what part of the country is in­ ominous is that their vessels are modern and Soviets already send ships to more than 90 volved. The need for such a compre­ technically advanced to cope with the com­ nations and are opening new routes to the hensive program has been emphasized plex and different seas and ports of the under-developed nations of Africa and South once again by this week's task force re­ world. America-a cold-war development of fore­ port to President-elect Nixon urging a Early this year, Time magazine concluded boding significance. Our response has been major Federal role in the public welfare a cover story on Soviet maritime development to abandon routes. system. with these challenging words: Time is running out. We can no longer af­ Two newspapers in Springfield, Mass., "The West, and especially the United ford the luxury of our ostrich-in-the-sea States, has no alternative but to accept the maritime posture. We have to act. But what the Springfield Republican and the Soviet challenge on the seas, because the to do? Springfield Union, have just finished welfare of the United States-and of the en­ The first step is legislation to revitalize publishing a series of thoughtful and tire free world-is so solidly tied to the sea the U.S. merchant marine. Along this line searching articles collectively entitled and to the untrammeled flow of trade. It my committee has held hearings on S. 2650, "Crisis in the Welfare State." With per­ w'ould be an historic error if a nation as a bill introduced by Senators E. L. (Bob) mission, Mr. Speaker, I would like to powerful as the United States allowed a crisis Bartlett of Alaska and Daniel Brewster of put in the RECORD at this point a Spring­ elsewhere, no matter how troublesome, to and me to accomplish this purpose. distract it from its determination to retain A companion measure, H.R. 13940, introduced field Republican editorial summing up t ..:.c J.n astery of the sea.... " by Representative Edward A. Garmatz of the series' conclusions and pointing out What are the dimensions of the Soviet Maryland is before the House. the need for a Federal welfare pro- !C.1.:>ritime threat? These bills can start us on the right track, gram: Last fall I requested the Library of Con­ with funds to build 30 to 35 new merchant WELFARE FEDERAL TASK gress to carefully examine the U.S.S.R;'s ships a year, a start on our promising nuclear The exodus from the South over the pa.st i:chievements in the maritime field. That ship program, research and development 30 years has made a national problem out o! distinguished institution ·responded with a money to expl~re new ma:r;i.time techniques, human misery. The urgency has reached the 1150' EXTENSIONS OrREMARKs· January 16, 1969- stage where a federal takeover of all Medicaid Atty. Gen. Elliot L. Richardson announced volatile situation in that area and its grave and welfare costs and administration must be Friday that his omce, after careful study, had implications for world peace. set in motion. found no grounds for undertaking criminal On that account I wish to associate myself The misery still exists. It has not been or civil proceedings "at this time" as a result with the four-point program which you rec­ eased significantly by its relocation. The sum of the legislative report. But criticism has ommend as the basis for U.S. policy on- a. of it is vastly greater than it was a genera­ centered on the unwarranted liberality of permanent peace settlement in the Middle tion ago. Some states have taken the humane welfare legislation and not on any suspicions East. approach to the problem. Others, particularly of law violations. We must make it clear that we will accept those where the poor have remained despite Actually, the period of operations most nothing less than the full implementation the lack of jobs, have continued to neglect probed by the committee--and discussed in of the Security Council resolution of No­ the needs of these citizens. our series-ended July 1 last year, at which vember 22, 1967 which recognizes the basic All this has encouraged more and more mi­ time the state took over all welfare costs principle of the sovereignty and territorial gration to the states with "fat cat" welfare from the cities and towns. But while the integrity of every State in that area. Israel programs. The trend has produced poverty state needn't bear the brunt of criticism for must be free to live in peace within secure pockets in the larger cities, along with social what happened before July 1, it has found and recognized boundaries; she should not and economic problems. Out of the confusion that the administering of welfare statewide be required constantly to guard against e:nerges the moral question: Should the will require considerably more in personnel threats or acts of force perpetrated by her overtaxed citizens of one state bear the bur­ and equipment than it now has. Arab neighbors and their Soviet mentors. den of poverty that was incurred, but not State Auditor Thaddeus J. Buczko this She must be guaranteed open access to inter­ underwritten, elsewhere? That's what's hap­ week called the state's welfare laws "irre­ national waterways-particularly the Gulf of pening in New York, California and Massa­ sponsible." He pointed out serious depar­ Aqaba and the Suez Canal. chusetts today. These three states are pay­ tures from sound accounting practice in the As a matter of policy we cannot live with ing for the sins of states like Mississippi. system. Normal controls over distribution of the less fortunate Security Council resolu­ The humane approach, "to promote the funds to districts and their disbursement to tion of December 31, 1968 which condemns general welfare," is a big reason for uniform recipients are not observed in the legislation Israel for her so-called aggression against eligibil1ty standards for welfare with the that established the system, he said. Sen. , when in truth Israel is the victim federal government coordinating the equal Cohen, incidentally, has since filed a bill in­ of daily harassment by guerrilla bands har­ treatment attack. Low standards would be tended to remedy these shortcomings. bored in the Arab countries on her periphery. raised and there would be an equality in U.S. Sens. Edward M. Kennedy and Edward What choice has Israel but to resist the sharing the burden. W. Brooke of Massachusetts both said, after incursions of her sworn foes who persist But today, in Twentieth Century America, the series, "The Crisis in the Welfare State," after 20 years in their arrogant refusal to there is · no uniformity or constitutional had appeared, they expected further action r~cognize her right to exlst? ground for forcing any state to provide aid on Medicaid in the coming session of Con­ The United States must work for the im­ to the poor, or aged. There are moo-e.stringent gress. Both senators also are having staff plementation of the Jarring Mission whose restrictions on states regarding the trans­ members study proposals that include the goal should be a permanent peace without portation of domestic shrubbery or the op­ federalizing of all welfare. Israeli withdrawal from the occupied terri­ erations of interstate moving vans. Yet the Secretary of Health, Education and Wel­ tories as a necessary pre-condition for that aged and poor are left to shift for themselves. fare Wilbur J. Cohen says a uniform federal peace. Israeli withdrawal can be conditioned An example of the benefits gap is in a program would ease hardship and reduce only on specific and enforceable guaranties, comparison of payments under Aid to Fam­ migration from rural areas to cities already never in return for idle promises. ilies with Dependent Children in Mississippi overburdened. While President-elect Nixon The United States must continue to supply ($9.30 per person per month) and New York indicated last fall he might favor some such Israel with adequate weaponry and jet air­ State, admittedly high-($62.50 per person move, the matter of cost may influence his craft to offset the mounting Soviet military per month). Citing the difference, Gov. decision. The federal governmen~ ls already presence in the area, at the same time that Rockefeller of New York proposed last month paying about two-thirds of the $6 billion we seek to negotiate with the Kremlin a that the federal government take over all spent annually on welfare in this country. mutual cessation of arms shipments to the welfare costs because the poor and aged in California Lt. Gov. Robert H. Finch, who combatants. · some states don't get enough aid. will succeed Secretary Cohen, has said of the While recognizing Israel's embattled posi­ In the Northeast, at least, factors other federal role in welfare, "Down the road we tion, we must also give urgent attention to than the migration from the South play will probably have to assume a greater share the tragic plight of the Arab refugees, espe­ some part in the welfare burden. .Reverses of the burden. The question ls how." cially those who were driven from their suffered by the textile industry, for instance, The question must also be: How long can homes in the aftermath of the six-day war. have created economically depressed areas. we wait? The concentration of the poor in The refugee problem continues to be a ma­ Changes in economy, technology, philosophy, the larger cities, with attendant misery and jor source of friction between Israel and her style of life make it necessary for the federal unrest-and heavy financial burdens on the Arab neighbors and it would seem that the government to run welfare or at least pay for states whose welfare policy ls the most hu­ United Nations through UNWRA or a new it. The loss of other industry-much of it mane--is a continuing and growing circum­ agency has a major role in the alleviation of to the South-has meant hardship for many stance. The threat to the vitality of a great human suffering and therefore in the communities. New technology has changed and powerful democracy is obvious. achievement of more stable conditions in the employment patterns. Legislatures overgen­ Welfare is a federal task. Middle East. erous with welfare aid have added to the Finally, United States policy must take pressures on taxpayers. into account the need for greater economic Perhaps it would be better for America if CRISIS IN THE MIDDLE EAST and technical assistance to the Middle East; equal health opportunities were available to even more significantly we can work toward all, a sort of Social Security of health. That the establishment of genuine economic co­ would obviate the need for the taxpayers of HON. MIKE GRAVEL operation among the several states in the a state to provide over-liberal benefits for a area as a prelude to the political coopera­ part of the population. The cost of medical OF ALASKA tion which is almost bound to follow. services is frequently a burden for middle IN THE SEN ATE OF THE UNITED STATES Whether an arm of the U .N. or a purely re­ class families, too. Thursday, January 16, 1969 gional organization is best equipped to serve Massachusetts taxpayers are supporting a this end remains an open question. program that is among the most liberal in Mr. GRAVEL. Mr. President, I have Once again I reiterate my support for your the nation since they are paying now for recently sent a letter of cosponsorship position and would be happy to join with Medicaid benefits far in excess of what is to my distinguished senior colleagues, you in sponsoring a resolution if you wish to approved for federal participation in that Senator MONDALE and Senator JAVITS in offer one. · program. Sincerely, connection with their joint statement MIKE GRAVEL. As pointed out in our recent series, "The on the crisis in the Middle East. I ask Crisis in the Welfare State," the Legislature tacked two expensive amendments onto the unanimous consent that the full text of my letter be printed in the Extensions of basic measure adopting the Medicaid pro­ A BILL OF RIGHTS FOR THE AGED gram for Massachusetts. Between them, the Remarks in the RECORD. amendments made about 160,000 more peo­ There being no objection, the letter ple eligible for medical assistance benefits was ordered to be printed in the RECORD, HON. LESTER L. WOLFF than Congress had approved for federal par­ as follows: OF NEW YORK ticipation. JANUARY 8, 1969. State Sen. Beryl W. Cohen, chairman of the Hon. w ALTER F. MONDALE, IN THE HOUSE OF REPRESENTATIVES Legislative Committee on Public Welfare and U.S. Senate, Wednesday, January 15, 1969 an avid proponent of the costly Medicaid blll Washington, D.C. as it was enacted in 1966; now points to his DEAR SENATOR: I have studied the text of Mr. WOLFF. Mr. Speaker, the Honor­ committee's recent report on Bay State wel­ your recent statement on the crisis in the able Wilbur J. Cohen, Secretary of fare excesses as a warning to be heeded. Middle East. I share your concern over the Health, Education, and Welfare has writ- January 16, 1969 EXTENSIONS OF REMARKS 1151 ten an excellent article, entitled "A Bill the cost of drugs has become a tremendous which permits him and his family to partici­ of Rights for the Aged," for the current financial burden for many of the aged who pate fully in the community without being have low incomes. Many live. in dilapidated, required to work and without the stigma of issue of International, the magazine of unsafe housing. And too many of our older charity. For those who prefer to work and the Seafarers International Union. citizens are lonely and live meaningless lives. to supplement their basic retirement income .secretary Cohen's article sets forth in The United States, the world's greatest with earnings, the economy .should find a detail the need to provide a wide range democratic nation, must show greater con­ place for their continued services. of opportunities for 20 million senior citi­ cern for the well-being and happiness of its EMPLOYMENT OPPORTUNITIES zens. This article and its proposals dis­ elder citizens. The nation must commit it­ self to a Bill of Rights for Senior Citizens Improved health and longer lives require play the same kind of compassion and a change in attitudes toward mandatory re­ reason that has marked the Secretary's which should include the assurance of these fundamental requirements for a decent life: tirement. The period of man's productivity years in public service. 1. Adequate retirement income. is being extended, and the longer period of I feel strongly that Secretary Cohen's 2. Modern and comprehensive health care. retirement that can be anticipated requires thoughts are worth the attention of my 3. Adequate and appropriate housing for increased financial resources. Given the op­ colleagues and all Americans and, for an acceptable price. portunity, many older persons would elect that reason, wish to include that article 4. Comprehensive rehabilitation services. a longer working lifetime. Employers should 5. Opportunities for employment. be encouraged to replace rigid retirement age and a related article in the RECORD at restrictions with flexible policies for hiring this point: 6. Better underntanding of the problems of aging through medical and social research. and retaining older workers. A BILL OF RIGHTS FOR THE AGED 7. Meaningful participation in all institu­ Many persons aged 65 and over have dif­ (By Wilbur J. Cohen, Secretary of Health, tions in society. ficulty finding satisfying employment within Education, and Welfare) 8. A wide range of leisure time activities. their skills or physical capacities. For these workers, the development of new and expand­ One of the greatest challenges of our time 9. Conveniently located and accessible is to offer a growing aged population the community services. ed opportunities in the service occupations opportunity to continue to share in the 10. Free and independent choices by Sen­ offers great promise. Others may be helped many benefits of an aflluent, dynamic soci­ ior Citizens of what they wil:lh to do with to return to work through new and expanded ety. At the beginning of this century, only their lives in a healthy dynamic society. education and training programs designed to meet the needs of older workers and older one out of every 25 Americans was 65 or INCOME over; by 1960 the proportion had grown to handicapped workers. The first step in fulfilling this Bill of one of every 10. HEALTH AND REHABILITATION Life expectancy at birth has nearly doubled Rights must be to improve the incomes of the aged. The incomes of many of the· aged Although older Americans have protection since the 1800's-reaching about age 70 to­ today against health care costs through Med­ day. Dramatic breakthroughs in medical sci­ are too ~ow to allow them to live decently. The Social Security program, the main icare, serious health problems still confront ence hold the promise of extending many the aged. They spend proportionally three more lives. Major advances against cancer, source of income for the majority of the aged, must be improved. In spite of the sig­ times more for drugs than persons under stroke and heart disease, for example, could age 65. A high proportion of the aged suffer add months, perhaps years, to the life span _nificant increases in Social Security bene­ fits over the past four years, 5.4 million aged from chronic conditions, arthritis, 'heart dis­ of the average American. Although a larger ease; many are blind. Others are confined to aged population is a dramatic tribute to the social security beneficiaries are still poor. As quickly as possible, the general benefit their homes or need help in getting about. nation's unprecedented living standards and A broad program of comprehensive health modern medical science, longer lives create level should be raised at least 50 percent with an increase in the minimum benefit to $100 services must be provided to meet these many problems, accompanied by the chal­ problems. lenge to make these lives more meaningful a month. These actions would eventually take 4.4 million persons out of poverty, in­ The extension of Medicare to include the to the older individual and society. . cost of prescription drugs would reiieve the During this decade, the nation has become cluding 3.2 million aged persons. An immedi­ ate 15 percent across-the-board increase in aged of a heavy financial burden. The aged increasingly aware of and concerned with would also be helped if the entire Medicare the problems of the older population. Re­ social security benefits with a $70 a month minimum benefit would immediately move ·program were put on a social insurance pre­ flecting this concern, a number of significant payment basis by combining the medical in­ steps were taken by the Congress to solve about 900,000 aged persons out of poverty. Urgently needed, also, is the adoption of a surance and hospital insurance parts of Med­ theee problems and to use the skills and icare, financing both from social security knowledge of older citizens. method of automatically increasing benefits to reflect price increases. Retired people contributions of workers and employees and The 1965 and 1967 Amendments to the matching contributions from the Federal Social Security Act which increased the value should be entitled to share in the rising standard of 11 ving provided by an expanding Government. Eventually consideration should of the average social security benefit, includ­ be given to a broader Medicare program in­ ing Medicare, thirty-five percent in four economy. These improvements in social security cluding periodic health examinations, dis­ years. . ease detection and related services. The de­ The establishment of Medicare which pro­ benefits would make possible a reduction in assistance payments for 1.1 million social se­ velopment of out-of-institution health serv­ vided health insurance fol'. 20 million older ices should be accelerated to enable more of Americans. curity beneficiaries who are also getting old The Older Americans Act, which stimu­ age assistance because their Social Security the aged to remain in their homes for care lated a nationwide program of community benefits are too low. About 125,000 benefici­ and treatment. planning to bring new and expanded services aries would be removed from the old-age as­ Some older persons require comprehensive and facilities to older people in their own sistance rolls altogether. The social security rehabilitative services to help them return communities. program must be steadily improved to keep to productive lives. About 7.8 million persons The inauguration of the Regional Medical pace with the nation's economic growth, age 45 and over have one or more chronic Program, designed to attack heart disease, which has been proceeding at an average an­ conditions partially or totally limiting their cancer and strokes-diseases which cause 70 nual rate of about five percent for the past major activity. About 2 million of them need percent of all deaths among older people. few years. vocational rehabilitation services in order to The Amendments to the Manpower De­ Improvements in the social security pro­ return to work. The remaining 5.8 million velopment and Training Act, authorizing grams would be sufficient to help most of the probably could not or would not want to be services to meet the special problems of aged out of poverty. There are, however, peo­ rehabilitated for employment. However, they older workers. . ple who may, for one reason or another, still could be helped into a greater degree of self Amendments to the Vocational Rehabili­ require public assistance. Two million men help and independence through modern com­ tation Act, enabling the states and commu­ and women are receiving old age a.Ssist­ prehensive rehabilitative services. An expan­ nities to assist the mentally and physically ance today, and their needs are not being sion of out-patient, home health services and handicapped, including the aged, to return met adequately. In addition to inadequate protective services, for example, would per­ to independent living. payments, residence and other restrictive mit older persons who face institutional care A rent supplement program and amend­ measures, eligibility requirements are bar­ to remain in their own homes if they so ments to the Housing Act, providing more riers to meeting their needs. Radical changes desire. acceptable housing arrangements for the must be made in our welfare program. HOUSING aged. One way to approach the problem would One of our society's greatest needs is for The Age Discrimination in Employment be to establish a Federally financed system decent housing within the financial reach of Act of 1967, outlawing age discrimination in of income payments with eligibility, the all older persons. In 1960, the Census Bureau employment. amount of payments and appeals determined reported nearly a half million Senior Citizen Much progress has been made in the past on a national basis. This would overcome households lived in dilapidated housing. decade, but much remains to be done A many of the problems of inequity and State­ Over two million more houses were deterio­ bolder, broader, more dynamic program ·for by-State variations and fl.seal inadequacy rating or lacking in plumbing facilities. Many Older Americans mul:lt begin. The plight of which plague the present welfare system. homes were unsafe, too large, physically dif­ mahy of the aged is deplorable. Thirty per­ Through a combination of public and pri­ ficult or too expensive for older people to cent of them live in poverty. Many are con­ vate programs, the retired worker should be maintain. fronted with serious health ·problems and entitled to an income related to his needs Housing designed for the aged must take 1152 EXTENSIONS OF REMARKS January 16, 1969 ·into account the many individual differences generations, and the agea are left . without Hanna, has a population of 1,100 aged men and needs of the aged. Some may wish to place or purpose. and women. Although the concept of such a -Stay in their own homes. Others may wish Today, with a world population of approxi­ community is unique in modern social plan­ to live in a high rise apartment. Some want mately three and a half billion, the problems ning for the aged, Neve Avot is only one of the companionship offered by a church­ of the unwanted and displaced elderly as­ 11 such communities built by Malben related home. Some may require institutional sume immense proportions. People over 65 throughout Israel. The surrounding village care. No matter what their income, they re­ now comprise some ten percent of every in­ of Pardess Hanna supplies the community quire more housing options. dustrial nation, and with increasing life ex­ ·with an the usual municipal services. There must be a vast expansion of hous­ pectancy their number is mounting steadily. Three-quarters of the community's resi­ ing to insure a wide range of choice to in­ The situation has intruded itself into the dents are active in some way. One man, well clude single family dwelllngs, apartments, forefront of national and international prob­ into his 80's, insists on working in the shoe .retirement villages and hotels, personal care lems, and every civilized people in the world repair shop. An elderly woman, a recent im­ ·facilities and homes for the aged. Through is addressing itself to the problem. . migrant from Eastern Europe, works at a an extension of a combination of approaches, Many nations now try to place the elderly loom, industriously turning out masterful ·mortgage insurance rent supplements, pub­ in useful, productive positions, permitting Persian rugs. lic housing, property tax exemptions and low them to remain in the mainstream of society. A visitor to Neve Avot once asked, "Why cost loans, the housing needs of the aged A number of countries have developed far­ do these old people continue to work?" A could be met more effectively. sighted and creative programs for the aged. _Malben staff member replied, "When a new­ Sweden has led the way in caring for its comer arrives, he sees everyone working and SOCIAL SERVICES aged. With a thoughtfully planned, compre­ getting satisfaction out of it. He sees people The development of appropriate social serv­ hensive system of services and institutions, leaving at 8:00 a .m. for the weaving shop, ices would greatly increase the aged person's the Swedes have come closer than anyone the ceramics shop, the sewing circles, or choices of suitable living arrangements. Ex­ to meeting this ever-increasing challenge. gardening and coming back at lunch time, panded homemaker services, meals on wheels, To meet the housing needs of the aged, pleased and enthusiastic." visiting and telephone services would permit special pensioners' residences are built with At Neve Avot a newcomer can choose to many of the aged to remain in the comfort government subsidies and equipped with the work full time, part time or not at all. He of their homes. The expansion of other com­ most modern conveniences, including assem­ can practice whatever he did previously for munity services, legal aid, and consumer in­ bly halls, hobby rooms, restaurants or cen­ a living, if facilities are available, or he can formation and counseling services would also tral kitchens, and medical services. Equally learn a new craft. One elderly citizen, a help them remain independent. important, they are located within housing former small tradesman from ·Rumania, de­ PARTICIPATION projects accommodating younger families so cided to try his hand at mosaics. Today, peo­ Too many of the aged withdraw from com­ that, in effect, three generations live under ple from all over Israel come to see .his cele­ munity life and suffer loneliness and social the same roof in separate quarters. brated mosaic sundial. isolation, partly because of the lack of social The Swedish pension system is unique in A first-rate physiotherapy center was and recreational opportunity, and partly be­ that it enables the elderly to compete for opened at Neve Avot in the spring of 1966, cause of society's unwillingness to allow them apartments in the open market, because pen­ providing everything from wax. baths for to participate meaningfully in its institu­ sions are automatically adjusted to the con­ rheumatic joints to machines that stimulate tions. We cannot permit the existence of a sumer price index each month and are pay­ paralyzed muscles. Its director comments, large group of forgotten older Americans. able whether or not the pensioner continues ."All we ask is to make the physically handi­ Through expansion of senior citizen cen­ working after the retirement age. If the older capped independent again." ters, adult education courses and volunteer person has little income apart from the basic At Natanya there is another old-age com­ activities, the aged would have more mean­ pension, he is entitled to a housing incre­ munity, consisting of pleasant cottages laid ingful choices of what they wished to do ment. ·out among gardens and landscaped grounds. with their leisure time. They would have the The Swedish National Labor Market Board Among its 650 residents, it boasts an 80-year­ opportunity to participate fully in communi­ has organized training courses for "home old doctor who makes emergency visits at ty life. They should be encouraged to con­ aides," usually housewives whose children are ·night, a 90-year-old pharmacist who keeps tinue to be active in community organiza­ grown and who want a part-time job. For a up with the latest in drugs, and a nurse in tions, in government, and in politics. Many minimal fee, they provide companionship her 70's who sterilizes instruments in the of them have had long experience in these and personal services to the elderly, helping dispensary. areas and they can contribute a great deal. the infirm bathe and dress, shopping, and Many of Israel's elderly, however, do not cooking midday meals. The service is subsi­ wish to reside in villages such as Neve Avot, THE FUTURE dized by the municipalities and in many but prefer living in the cities in their own Bold, new, imaginative approaches are cases is free of charge to the recipients. apartments. Malben has developed several needed if we are to meet our obligations to The Swedish senior citizen is not pushed ways of serving them, the most outstanding the people who have contributed so much aside when it comes to jobs, and the Swedish being the Batel Avot, a system of apart­ to this nation's progress. Their wisdom, their Labor Exchange welcomes all applicants, re­ ment houses with specially-designed equip­ skills and their interest are still essential to gardless of age. Those past the retirement age ment for the elderly, such as handrails. along the well-being of the nation. of 67 are urged to continue working. The the walls and easy-to-reach shelves. In the past decade, a remarkable reawak­ Swedes do not accept the adage that old Malben also helps the aged get ground­ ening of concern for the aged has occurred. people are like Chinese porcelain-to be kept fioor apartments in regular apartment houses. The foundations for providing basic eco­ on the shelf lest they be broken. Job retrain­ One elderly family, needy immigrants from nomic, social and medical services have been ing courses offered by the Labor Market North Africa, was determined to stay to­ laid. Now we must continue to build an en­ Board have no age limits. Small workshops, gether-and in their own home. Through riched healthy environment for all the aged. where materials for handicrafts can be Malben and a state welfare fund, they ob­ They should have every opportunity and the bought or tools borrowed, are popular meet­ tained a two-bedroom, ground-floor apart­ help to take advantage of these opportunities ing places for Swedish senior citizens. ment in Tel Aviv, rent and tax-free. In ad­ to live freely and independently in a healthy, Social insurance reduces the price of pre­ dition, they receive housekeeping and finan­ dynamic and progressive society. scribed drugs for the elderly, but many medi­ cial aid. Malben teams of a doctor, nurse and cines considered vital, such as insulin· for physiotherapist make regular visits to such NEW HORIZONS FOR SENIOR CITIZENS diabetics, are free. Earphones for the hard-of­ families. hearing not only are free but are delivered at The desire to provide useful work for older "Let the elders that rule well be counted the expense of the state. The bulk of hospi­ citizens underlies all efforts on their behalf, worthy of double honor," says the book '1f tal expenses is paid by the government and and the Ministry of Labor has created a Deuteronomy. From Jerusalem to Antiorn, there is no extra charge for doctor's care, special employment agency for this purpose. Rome to Alexandria, in the ancient walled "The jobs it locates run from watchman to cities dotting the Mediterranean coast, eM.ers operations or drugs. guided the affairs of the community. T

/ 1170 EXTENSIONS OF REMARKS January 16, 1969 ate. Senator JAVITS and I had joined in an opportunity for a hearing. Amendments sity. formal education program(s) or sponsoring similar legislation in the 90th to an approved application would be sub­ course(s) of instruction in the health disci­ Congress. A section-by-section analysis ject to approval just as if they were original plines that lead to the granting of recog­ applications. nized certificates, diplomas, ot degrees, or of the bill follows: The United States would be entitled to that are required for professional certifica­ SECTION-BY-SECTION ANALYSIS recover from the applicant the amount of tion or licensure. SECTION 1-SHORT TITLE any payments made under a guarantee under SECTION 5 "Hospital Modernization and Improvement this part. (The Secretary for good cause Amends the new section 631 to provide Act of 1969" could waive this right of recovery.) The that the Federal Hospital Council will eval­ United States would be subrogated to the uate the effectiveness (including the inno­ SECTION 2 rights of the applicant upon its recovery of vation of new methods) of modernization Authorization of loan guarantees payments from the applicant. The Secretary under the Public Health Service Act and re­ The new section 621 of the Public Health would be authorized to subject guarantees port at least annually to the Secretary of Service Act would authorize the Secretary under this part to the terms and conditions Health, Education, and Welfare and to the to guarantee the payment of principal and that he might determine to be necessary to Congress with its findings and recommenda­ interest to non-Federal lenders who made carry out the purposes of this part. In order tions. loans to public and other nonprofit agencies to protect the financial interest of the United SECTION 6 States, the Secretary would be authorized to for projects for the modernization of medi­ This section of the bill would amend sec­ cal facilities. The amount of a loan guarantee modify any of the terms and conditions of the guarantee. tion 302(c) (2) {B) of the Federal National with respect to any modernization project Mortgage Association Charter Act {added by under this part, when added to a grant or a Neither the applicant on whose behalf a loan guarantee is made nor any other person the Participation Sales Act of 1966-Public loan under part A, could not exceed 90 per­ Law 89-429) , which authorizes FNMA to es­ cent of the cost of such modernization proj­ who made a loan to the applicant could con­ test any guarantee made by the secretary, tablish trusts for HEW with respect to cer­ ect. tain loans by the Commissioner of Educa­ Allocation among the States with one exception. Fraud or misrepresenta­ tion could make the guarantee contestable. tion, so as to authorize such trusts also The new section 622 would authorize the with respect to loans under these new pro­ Secretary, after consultation with the Fed­ Payment of interest on guaranteed loans visions of the PHS Act. eral Hospital Advisory Council, to allot the The new section 624 would create a con­ amount available for loans which might be tractual right to each holder of a loan guar­ guaranteed under this part among the States anteed under this part to receive from the GOVERNMENT REFORM MEASURES in a fair and equitable manner after con­ United States (a) one-half of the interest INTRODUCED sidering relative population, financial need, rate which becomes due and payable, or (b), and need for modernization of fac11ities. Any if lower, the interest which would become amounts allotted for the guarantee of loans, due and payable at a rate of 3%. Such HON. ANCHER NELSEN but unobligated by a State at the end of the amounts as might be necessary to carry out fiscal year would remain available for the this section would be authorized. Contracts OF MINNESOTA next fiscal year. to meet the payments provided for in this IN THE HOUSE OF REPRESENTATIVES Applications and conditions section could not amount to an aggregate Thursday, January 16, 1969 Under the new section 623, loans would be greater than the amount provided for in guaranteed only upon an application sub­ appropriation acts. Mr. NELSEN. Mr. Speaker, I am today mitted to the Secretary through the State Limitation on amount of loans guaranteed, introducing two measures designed to agency designated under section 604 as the The new section 625 would establish a imp.rove the operation of the Federal sole agency responsible for the administra­ limit on the cumulative total of loan guar­ Government. One, which should be con­ tion of the State plan. An application would antees under this part that could be out­ sidered absolutely top priority, would es­ have to meet certain specified requirements. standing at any one time. For fiscal year tablish a Hoover-type commission with First, the application would have to meet 1970, the maximum allowable limit of out­ broad authority to study Federal organi­ the requirements under clauses (1) through standing loans guaranteed would be $400 zation, programs and activities. The com­ (5) of section 605(a). These requirements million; for fiscal year 1971, $800 million; mission would then propose improve­ relate to the inclusion in the application of and for fiscal year 1972, $1,200 million. These a description of the site for the project, plans limits would ap}Jly unless appropriation acts ments to modernize and simplify Federal and specifications for the project, assurance specified a lower limit. operations, and ways to cut present costs that the applicant has proper title, assur­ and duplication. ance of adequate financial support to com­ Loan guarantee fur.d The Federal program explosion of re­ plete and operate the project, and assurance Under the new section 626, a separate loan cent· years has created near chaos for as to compliance with the prevailing wage guarantee fund for loan guarantees for the both the public and Federal personnel. provision in the Davis-Bacon Act. modernization of hospital and medical fa­ The sudden prolifera ti on of countless The application would also have to con­ cilities would be established within the tain a certification by the State agency of Treasury. The fund would be available with­ agencies, boards, and commissions has what it determines the cost of the moderni­ out fiscal year limitation. Such amounts as resulted in incredible confusion, excessive zation project will be. might be necessary to provide capital for costs, public dissatisfaction to the point In order for an application to receive ap­ th0 fund would be authorized to be appro­ of disillusionment and sadly inefficient proval, the Secretary would have to find priated. service. that four requirements were met. First, a The Secretary would be authorized to bor­ Local and State administrators kept sufficient amount to cover the cost of the row funds to discharge his responsibilities endlessly waiting for uncertain atten­ project would have to remain in the State's under guarantees issued under this part. In tion have often found the Federal Gov­ allotment under new section 622. Second, the order to borrow funds, the Secretary would Secretary must make the findings required be authorized to issue notes and other forms ernment to be the ship which never under clauses (1) through (4) of section of obligations bearing interest at a rate de­ comes in from the sea of redtape. Some­ 605(a). These required :findings are that the te":'mined by the ::3ecretary of the Treasury. how, this cumbersome and baffling system application contains assurance as to title, The Secretary of the Treasury would be au­ of loose ends must be tied up into a financial support, and payment of prevailing thorized to purchase these obligations is­ comprehensible and serviceable Federal wages, that the plans and specifications are sued by the Secretary. The amounts bor­ package. The commission recommended, in accord with regulations, that the applica­ rowed under this part would be deposited in to be called the Commission for the Im­ tion is in conformity with the State plan the fund. The Secretary would also redeem, provement of Government Management approved under section 604, and that the from the fund, the notes and obligations is­ sued under this section. and Organization, is therefore a sound application has been approved and recom­ first step. mended by the State agency and has priority SECTION 3 over other projects. (Under this part, the The commission would also be in­ finding by the State agency that an appli­ Expansion, if not in excess of 10% O'.f structed to examine the desirability of cation has priority over others would be existing facilities and if in conformity with block grants and revenue-sharing with based on appropriately modified regulations.) the State plan, is also eligible for loan guar­ antee and interest payments. State, county and city governments. Ad­ Third the Secretary must obtain assurances ditionally, it would assist Congress in that the applicant will keep records and SECTION 4 setting sounder priorities through its as­ make reports which the Secretary reasonably Where it is determined that the need is sessment of program costs and effective­ requires. Finally, the Secretary must deter­ equal between two or more institutions, pri­ mine that the terms and conditions of the ority will be given to teaching hospitals. ness. loan are reasonable and in accord with regu­ A teaching hospital is defined as a. hospital The second measure introduced today latioru;. that allocates a substantial part of its re­ would permit production of a single, The Secretary could not disapprove an ap­ sources to conduct, in its own name or in comprehensive catalog-presently non­ plication without affording the State agency formal association with a college or univer- existent-containing complete informa- ·January 16, 1969 EXTENSIONS. OF REMARKS 1171 In company with Mr. Margolius, I am to make it impossible for any Administration tion about all Federal assistance pro­ now to turn its back on consumers. grams. sure most of ·us would also say, "Well "It's this new voice that's so startling," she Disclosures last year indicate that done, Betty." · says. "It's the fact that consumers used that present information on Federal aid Under unanimous consent, I herewith voice articulately and vigorously that helped programs is entirely inadequate to assist include the article referred to above, as us pass the bills in the first place, and helped those they are intended to benefit. The follows: give the consumer more and more represen­ proposed catalog would include, there­ WnL DONE, BETTY tation in state and local government, and (By Sidney Margolius) helped the Federal Government to be more fore, such basic information as a de­ diligent in forcing consumer protection, and scription of the program, the administer­ One of the biggest surprises to many peo­ helped awaken industry to the fact that the ing department, eligibility restrictions, ple was the highly effective job Betty Furness consumer won't settle for an unsafe or un­ benefits available, current level of funds did in representing consumers as the Presi­ sound or dishonest marketplace." dent's consumer assistant. available, officials to contact, mechanics And one of the main concerns now is that Complaints about home appliances, their of application and identity of related there probably woi+'t be anyone with the de­ warranties and repairs brought the most let­ programs. ters into her office, Betty reports. Many war­ termination and ability of Betty or her pred­ ranties or guarantees tell the consumer what ecessor, Esther Peterson, to represent at the the manufacturer will do, but not what he White House the cheated or even just disap­ won't do. Some warranties put an "unreason­ "WELL DONE, BETTY"-TRIBUTE BY pointed consumers. Our new President, Rich­ able" time limit on the manufacturer's re­ CONSUMER COLUMNIST SIDNEY ard Nixon, so far has shown no interest or sponsibility. understanding of the real extent and serious­ Sometimes, too, the warranty can be in­ MARGOLIUS TO BETTY FURNESS ness of consumer problems today. IN THE MACHINIST voked only by "unreasonable effort or ex­ OUTSPOKEN AND SYMPATHETIC pense on the part of the buyer," Betty says. When Betty was appointed consumer as­ Since she has left office, she has turned HON. LEONOR K. SULLIVAN sistant to President Johnson two years ago, down a fortune in offers from manufacturers and sellers to do commercials and sponsor OF MISSOURI a lot of people thought she was just a glam­ orous actress. Actually, as we pointed out at their products. She refuses to be involved in IN THE HOUSE OF REPRESENTATIVES the time, she was much more-a highly-in­ automatic payoffs. Thursday, January 16, 1969 telligent, outspoken woman with a great deal "I won't do it," she told me. "I want to be of sympathy for the underdog (exactly what free to comment. I wouldn't sponsor any Mrs. SULLIVAN. Mr. Speaker, one of the consumer is nowadays) . product I could not investigate myself." the most e:ffective battlers for consumer As the government•s top consumer repre­ Betty Furness is going to lecture, and is causes over the years, and the first per­ sentative, Betty spoke her mind frankly at considering doing some writing. She prob­ son to bring vital consumer information Congressional hearings. She took to the road ably also will be back on the air. to the general public through a regular to tell business orgaruzations what was trou­ When she does, we'll all be listening. bling consumers, and to tell consumer groups newspaper column devoted to this sub­ what they needed to do to get protective ject, is Mr. Sidney Margolius, whose laws. She made 90 speeches· in less than two column has been appearing for years in years. the newspaper of the Machinists Union Congressmen especially were surprised. STATEMENT ON THE MIDDLE EAST and i~ now published in a great many They had not expected such expert testi­ other periodicals. His books on consumer mony from the former movie and TV star. HON. JOHN M. MURPHY issues are widely sold. Mr. Margolius is In all, Betty Furness helped get 11 consum­ er bills passed in the time she was in office. OF NEW YORK also serving the consumer cause as a IN THE HOUSE OF REPRESENTATIVES member of the National Commission on In an interview before she left Washing­ ton, she told this writer: "The most impor­ Thursday, January 16, 1969 Product Safety created by the 90th Con­ tant insight I got is that consumer problems gress. His judgments are knowledgeable are bigger, deeper and more complicated Mr. MURPHY of New York. Mr. Speak­ critical, and fair, so those of us who hav~ than I, and probably most people, had re­ er, on Friday, January 3, 1969, I joined a been steady readers of his column re­ alized,'' she confided. number of my colleagues in the House of spect his integrity. "In the beginning I honestly thought that Representatives in signing a statement to Therefore, of all of the compliments industry was trying to please the consumer. I am not so sure any morl!!. Now I think the e:ffect that the United Nations Secu­ and praise heaped on Betty Furness as there is more manipulating than pleasing. rity Council's censure of Israel was one­ she leaves her White House assignment "I did not have a full concept of the de­ sided, and ignored the Arab terrorism as Special Assistant to the President for ~ree of frustration many consumers undergo, which has been rampant in the Middle Consumer A:ffairs, in a column by Mr. llke the family that buys a car, finds serious East. It is in our highest national inter­ Margolius today will undoubtedly be re­ defects, but the dealer won't make good est to continue to pursue an honorable garded by her as among the most mean­ and the family is left with half a car." Arab-Israel peace, and I feel that the ingful tributes she has received for it is Are consumer complaints on the whole jus­ Security Council's action was harmful to written by probably the fore~ost pro­ tified? "Totally," Betty answers with convic­ tion. "Manufacturers tend to blame product our e:fforts to secure peace. Under leave fessional in the field of consumer educa­ difficulties on consumers themselves. They to extend my remarks in the CONGRES­ tion. say. 'Did they read the instructions? Are they SIONAL RECORD, I include the text of that Mr. Margolius, incidentally, was one doing it right?' But the difficulties most statement: of the best witnesses to appear before my often are not the fault of the consumers." STATEMENT ON THE MIDDLE EAST Subcommittee on Consumer A:ffairs of She has told manufacturers the unvar­ The United States must continue the pur­ the House Committee on Banking and nished truths as she found them. In one o:r suit of an honorable Arab-Israel peace in her Currency in August 1967, in support of her last speeches, to the National Associa­ highest national interest. Accordingly, we strong truth in lending, garnishment, tion of Manufacturers, she warned: "You believe that the one-sided decision of the and other provisions of my Consumer may be rejoicing over the approach of a Re­ United Nations Security Council to censure publican Administration, but I can tell you Israel and to ignore Arab terrorism is prej­ Credit Protection bill, H.R. 11601 which if consumer problems are left unattended became Public Law 90-321. I am' there­ udicial to the attainment of a genuine peace. over the next four years-and I hope and It is difficult to understand why the inter­ fore particularly pleased to call to the assume they won't be-the remedial action national community remains mute when attention of all of the Members of Con­ taken by some future Administration and Arab terrorists commit murder and finds its gress who believe in the consumer cause some coming Congress will be even more voice only when Israel undertakes to put an the excellent article by Mr. Margolius severe than it would be if the problems are solved as they come up." end to such atrocities-. . about the able woman who now leaves The recent unfortunate incidents at Athens She also points out that most of the con­ and Beirut have been torn out of context. the Federal Government after perform­ sumer-minded Senators and Congressmen ing an outstanding job as the voice of the like Magnuson, Proxmire, Hart, Nelson, Pat­ Since the cease-fire after the six-day war of consumer in Government. As Mr. Mar­ man, Sullivan, Foley and others, are back June 1967 to last December 20, there were golius points out, Betty Furness and her 1,002 incidents of guerrilla attacks against in Congress. In fact, some like Leonor Sulli­ Israel; 259 Israelis were killed, one-fourth of pioneering, innovative, and imaginative van and John Dingell, who campaigned on them civ111ans; and 1,005 wounded, all of predecessor in that job, Assistant Secre­ consumer issues, got 73 and 74 per cent of whom required hospitalization. Since the tary of Labor Esther Peterson, both the vote in their districts. United Nations Security Council resolution, brought determination and ability to a COMPLAINTS HELPED six more Israelis have been killed by terrorist terribly difficult assignment and did a But Betty Furness believes that it is the attacks. fine job. aroused consumers themselves who are going In a parallel war against Israel's economy, 1172 EXTENSIONS OF REMARKS January 16, 1969 the Arab states have maintained their boy­ it to the Arab peoples, as well as to the Israe­ standing, and quality journalism was cotts and blockades, have tried to deny Israel lis, to take strong measures to curb terror­ prematurely stilled in this Nation. Bill the use of international waterways and to ism and to bring Arabs and Jews to the peace divert her life-giving water supply. Arab ter­ table. Baggs, editor of the Miami News, died rorists hijacked an El Al plane and forced it We have not given up hope for an Arab­ at the early age of 48 in the city of Miami, to go to Algeria. Last week, Arab terrorists Israel peace. We believe that there are peace­ the city he shaped and loved. from Beirut attacked the same El Al plane loving Arabs who would welcome mutual co­ But Bill Baggs was much more than a in Athens with guns and Molotov cocktails, operation. We must help the Arab peoples to local man. The tributes to his memory killing one of the passengers, wounding an­ strengthen the hand of those who wlll vote and the causes for which he dedicated other, and endangering the lives of 49 others, for Arab-Jewish cooperation and peace. his life and his work have poured in from including some American citizens. SIGNERS OF STATEMENT all over the world. They are ready testa­ Three days later, the Israel air force struck back at Arab airlines, destroying 13 planes at Addabbo, Joseph P. (N.Y.) . ment to the global influence of the man. the international airport at Beirut. Great Annunzio, Frank (Ill.). His family, friends, and associates care was taken by the Israelis to protect Ayres, William H. (Ohio) . mourn him; the famous and those he be­ human life. This has been described as a re­ Barrett, William A. (Pa.). friended will miss him; those whose lives taliation. In truth, this was a dramatic effort Bell, Alphonzo (Cal.). he touched and whose lives touched him by Israel to inform the Arab governments, Biaggi, Marlo (N.Y.). will be the better for having met him which have been supporting the terrorists, Bingham, Jonathan B. (N.Y.). Brasco, Frank J. (N.Y.). along the way. that Israel was prepared to defend her sky­ Bill Baggs, journalist, was more than lanes to the outside world, and that she Burke, James A. (Mass.). would not allow her enemies to isolate and Burton, Phillip (Cal.). a recorder and interpreter of events. He strangle her. Button, Daniel E. (N.Y.). was involved and active in the causes and Byrne, James A. (Pa.). crusades of his day-he nudged history Both Israel and Lebanon complained to the Carey, Hugh L. (N.Y.). UN Security Council. But the world body was Cellar, Emanuel (N.Y.). and left his imprint in an all too brief silent and indifferent when the El Al olane Clark, Frank M. (Pa.). lifetime. was attacked. It was vociferiously indignant Cohelan, Jeffery (Gal.). Bill made two trips to Hanoi as an un­ when Israel replied. The Israelis have been Conyers, John (Mich.). official peace envoy from the United unable to win UN Security Council support Dent, John H. (Pa.). States because he was concerned with for their complaints because the Arabs are Diggs, Charles C., Jr. (Mich.). twice protected: the Soviet Union vetoes any the ever-increasing loss of life and daily Edwards, Don (Cal.). suffering in that tragic war. Should the resolutions directed against them and there Eilberg, Joshua (Pa.). are six members who do not have diplomatic Farbstein, Leonard (N.Y.). Paris peace talks end in a settlement of relations with Israel. Fascell, Dante B. (Fla.). the Vietnam War, there is growing In Jerusalem several weeks ago, 12 Israelis Fish, Hamilton (N.Y.). speculation that Bill Baggs will be known were killed and scores wounded, as a truck­ Fraser, Donald M. (Minn.). to have lent a hand in bringing the prin­ load of dynamite exploded in a crowded Friedel, Samuel N. (Md.). cipals together. market street. We were astonished that this Fulton, James G. (Pa.). outrage evoked no echo from the world's civ­ The editor had political enemies who Garmatz, Edward A. (Md.). disagreed with his approach to and in­ ilized capitals-neither sympathy for the Gilbert, Jacob H. (N.Y.). victims, nor condemnation for the criminals. Green, Edith (Oreg.). terpretation of domestic and world prob­ The Arab governments have taken pride Green, William J. (Pa.). lems. Yet I knew of no personal enemies publicly in aiding and ab~tting the guerrillas. Halpern, Seymour (N.Y.). of Bill Baggs. Lebanese Premier Abdullah Yam has recently Hays, Wayne L. (Ohio). To those with the ready solution to reaffirmed his country's support for terrorist Helstoski, Henry (N.J.). complex problems, Bill often quoted a activity against Israel, calling it "legitimate Horton, Frank (N.Y.). favorite phrase: and sacred." By relocating in Lebanon, which Joelson, Charles S. (N.J.). enjoys the reputation of a pro-Western mod­ Kluczynski, John C. (Ill.). This is not a simple world, my friend, and erate, allegedly aloof from the Arab-Israel Koch, Edward I. (N.Y.). there are no simple answers. conflict, Arab terrorists-such as the Pales­ Lowenstein, Allard K. (N.Y.). To those words I would add a favorite tine Liberation Organization, which used to McCarthy, Richard D. (N.Y.). quotation that I keep on a small in­ have its headquarters in Cairo-obviously Madden, Ray J. (Ind.). felt that here they would be immune from Mikva, Abner J. (Ill.). scribed bronze plaque on my desk. The Israeli counter-terrorist measures. Minish, JosepliG .(N.J.). words are attributed to Etienne de Grel­ The UN resolution will encourage, we fear, Moorhead, William S. (Pa.). let-1773-1855-who immigrated to the the Arabs to intensify their terrorism, secure Murphy, John M. (N.Y.). United States from France: in the knowledge that a sympathetic Secu­ Nix, Robert N. C. (Pa.). I shall pass through this world but once; rity Council will protect them by punishing Ottinger, Richard L. (N.Y.). any good thing therefore that I can do or any anyone who tries to resist them. Since the Patten, Edward J. (N.J.). kindness that I can show to any human be­ UN Security Council decision, Israel has Pepper, Claude (Fla.). ing, let me do it now, let me not defer it, or counted more civ111an casualties, and has Podell, Bertram L. (N.Y.). neglect it, for I shall not pass this way again. buried six more dead. Some of the dead lost Price, Melvin (Ill.). their lives to terrorists whose weapons were Rees, Thomas M. (Cal.). The greatest tribute to Bill Baggs was aimed and fired from Lebanon, a few hours Rodino, Peter W., Jr. (N.J.). written by the man himself-he lived after the UN censure vote. Rosenthal, Benjamin S. (N.Y.). those words. So the threat to the peace will grow and Ryan, William F. (N.Y.). there are ominous signs that the Soviet Scheuer, James H. (N.Y.). Mr. Speaker, I include at this point in Union will exploit the censure of Israel to Stratton, Samuel S. (N.Y.). the RECORD the announcement of Bill whip up international opinion against Israel Symington, James W. (Mo.). Baggs' death as reported in the New York e.nd to intensify pressures for a Soviet-dic­ Tiernan, Robert O. (R.I.). Times of January 8, 1969. tated settlement which would force Israel to Vanik, Charles A. (Ohio) . Following the notice, I include the tes­ withdraw from occupied territories, without Wilson, Charles H. (Cal.) . timonial to the memory of Bill Baggs as requiring the Arab states to enter into a gen­ Wolff, Lester L. (N.Y.). written by his long-time friend and com­ uine peace with her. Yates, Sidney R. (Ill.). panion, the Honorable Fuller Warren, We hope that our government will not par­ ticipate in a dangerous collaboration with former Governor of the State of Florida. Israel's enemies which will prove subversive And, because he so clearly captured the to the peace and inimical to the best inter­ BILL BAGGS: A VOICE STILLED; A character and qualities of the man, I in­ ests of our own country. It is in America's in­ MAN REMEMBERED clude the January 8 article by Miami terest to insure that the Soviet Union does News columnist John Keasler: not gain a dominant influence in the Middle [From , Jan. 8, 1969] East, and it is in America's interest that HON. CLAUDE PEPPER WILLIAM C. BAGGS, MIAMI EDITOR WHO WAS Israel be strong enough to insure her inde­ OF FLORIDA pendence. LIAISON IN HANOI, DIES There must be no retreat from the struggle IN THE HOUSE OF REPRESENTATIVES MIAMI, January 7.-William C. Baggs, the for a genuine Arab-Israel peace in the Middle Thursday, January 16, 1969 editor of The Miami News, who visited Hanoi East. Arab terrorism is gaining ground in in 1967 and 1968, and served as an unofficial Arab countries and if it continues to intimi­ Mr. PEPPER. Mr. Speaker, 9 days ago peace envoy, died today in the Miami Heart date Arab rulers, then the Arab peoples today a respected and resourceful voice Institute of viral pneumonia. He was 48 years themselves will be the worst victims. We owe for racial tolerance, international under- old. January 16, 1969 EXTENSIONS OF REMARKS 1173 "If I should seek to touch the core of all Mr. Baggs was stricken about 10 days ago William Calhoun Baggs was b<>rn in with influenza, which worsened into pneu-. Atlanta on Sept. 30, 1920. His parents were his greatness, I would lay my hand upon his monia. He was hospitalized cm Pee. 29. . an Atlanta automobile dealer, the late C. C. heart. I should speak of his humanity-his Baggs, and the former Kate Bush of Colquitt, almost inspired sympathies, his sweet phi­ On his second trip to North Vietnam last lanthropy and the noble heartfulness that · spring, Mr. Baggs and Harry S. Ashmore, ex­ G~e did not attend college, but he once told ran like a silver current through his life. ecutive vice president of the Center for the His heart was the furnace where he fash­ study of Democratic Institutions at Santa a friend that he began his real education when he became 1ll after he finished high ioned all his glowing speech. Love was the Barbara, Calif., brought out of Hanoi the current that sent his golden sentences puls­ initial aide memoire tha.t set forth North school and was confined to bed for a year. Vietnam's position on negotiations with the He devoted the time to reading history and ing through the world, and in the honest literature. throb of human sympathies he found the United States. His newspaper career began in 1941 when anchor that held him steadfast to all things The aide memoire was turned over to Am­ good and true. He was the incarnate triumph bassador William H. Sullivan in Vientiane, he worked on the copy desk of The Panama Star and Herald in Panama. of a heartful man." Laos, on April 6. It stated that North Viet'." namese representatives were prepared to meet EDITOR SINCE 1957 This must also be said of Bill Baggs. those of the United States for "contacts," but During world War II he served with the Farewell forever to a friend-a friend of that no business of substance would be mankind and a personal friend of mine and 485th Bomber Group of the 14 Air Force many others! transacted until a bombing halt had been in North Africa and Italy. announced. He worked briefly for The Greens?oro FuLLER WARREN. Mr. Baggs and Mr. Ashmore, former editor (N c) News in 1945 and joined The Miami of The Little Rock Gazette, had published Ne~~ as a reporter in 1946. He became a (From the Miami (Fla.) News, Jan. 8, 1969] last October a book called "Mission to Hanoi: columnist in 1949 and was promoted to editor ". . . THE MAN-LITTERED, LITERATE, UNIQUE; A Chronicle of Double-Dealing in High in 1957. WAYSTOP BETWEEN A WILD IRREVERENCE Places,'' an account of their intermediary role Amon"' the many awards won b¥ his paper AND A DEEP BELIEF" in the negotiations. during his editorship were three Pulitzer (By John Keasler) Although their two trips-Mr. Ashmore Prizes. . f ti d also accompanied Mr. Baggs in 1967-were Mr. Baggs had appeared serious1 y a gue The start of his last column is still in his made with the knowledge and assistance of since he returned from his second trip to typewriter, marked "Baggs for Friday," and the State Department, the two editors be­ Hanoi last March. He was hospitalized for a nobody thought of moving it, for it was un­ lieved that their efforts had been undercut brief period in the fall for tests and observa- thinkable he wouldn't return. None of us by officials in the Johnson Administration. tion. could imagine that. Mr. Baggs is survived by his widow, Joan, Now the long, yellow sheet of wire-service A "CONCILIATORY" CONVERSION and two sons, Craig and Mahoney. paper he favored hangs blankly in his office, After their first trip in January, 1967, the which is so like the man-littered, literate, editors brought back reports of a "concili­ [From the Miami (Fla.) News, Jan. 11, 1969] unique; waystop between a wild irreverence atory" conversation with President Ho Chi and a deep belief. Minh of North Vietnam and were subse­ BILL BAGGS: HIS Goon DEEDS WILL LIVE ON We weep he didn't get to finish. But we quently given a State Department message MIAMI. fear his sardonic editing of the maudlin to send to Hanoi. Mr. Ashmore later that year To THE EDITOR: ,, more. charged that President Johnson had "effec­ "He is gone and no man can fill his place. And all we know for sure, or begin to grasp tively and brutally canceled" the peace feeler Of few men can this be truthfully said. But in this bad time, is that it's not just every by sending an uncompromising letter to the it can be truly said of Bill Baggs. He achieved lifetime you get to meet and learn from a North Vietnamese leader. The Johnson Ad­ a unique and useful place in this community gentle maverick who somehow led the ministration denied the charge. that is unlikey ever to be filled. herd ... Mr. Baggs' dispatches from North Vietnam It is hard to understand why he was Empty is a word with more dimension now on both trips appeared in his paper, The taken at the meridian of his usefulness. to those who knew Bill Baggs, newspaper­ Miami News, and were distributed by The Like al'.other greatly gifted native Georgian, man, always the stylist, most gregarious loner . He had the first interview Henry Grady, Bill Baggs died just when in the world; Georgia boy who became an in­ given by Ho Chi Minh to an American news­ Florida and the nation needed him most. timate of the great and of the lowly, throw­ paperman in several years in 1967. All that is mortal of Bill has left this life, back editor of eerie agelessness, who had un­ He described Ho Chi Minh as "obviously but the great good he did while here will believable hordes of friends and who drove well-informed about political and economic live on for a long time. his enemies further frantic because they events in America ... cordial, even friendly, Bill Baggs and John S. Knight did more sensed he rather loved them. And who prized but he was politely firm in expressing the than any other two newspapermen to ex­ individualism above all. policy of his country. At times he became im­ pose the senselessness of the most sense­ "Damn it, don't call this a product!" he patient with the translator and he turned less of all wars, which has already killed exploded mildly-he could do that-to a and addressed his American visitor in fault­ more than 30,000 American men and boys. young journalist who once, in innocence, had less English." They turned the revealing light of truth referred to our newspaper as "the end prod­ Mr. Baggs was one of a few Southern news­ on this senseless slaughter. When peace uct." Baggs pointed from his window down paper editors who crusaded for Negro rights. comes, they will be entitled to some credit to the interminable lines of cars fretting His columns and editorials won numerous for bringing it about. along MacArthur Causeway, in the rush­ awards from human rights organizations. Henry Grady did more than any other hour. "Those are products," he said, and then They also brought him the enmity of the American of his time to heal the wounds waved a copy of The News. "This is a news­ South's right wing, and a number of threats that festered in the hearts of Southerners paper." upon his life. after the Civil War. Bill Baggs did much to He meant it was alive. Certainly his was. A colorful editor in the early American heal the wounds that hatred inflicts upon He pridefully called it a writer's newspaper, newspaper tradition, he was more apt to the human heart. He was the living embodi­ a reporter's paper. All he asked of a staffer answer his critics with barbed humor than ment of brotherhood. He believed all of us was that he be a pro. Over that, personal with invective. are children of the same Creator and, there­ eccentricities in his people were no liabili­ Regarding the Ku Klux Klan, he once fore, entitled to be treated as equals. And ty. If anything, he treasured them. The wrote: "Of an estimated Florida population he was an eloquently articulate evangelist staff seldom disappointed him in this re­ of 3.8 million, we have not quite 1,450 peeking of his deep and abiding belief in the brother­ spect. Baggs always liked the comparison out from behind the pillow case. This is hood of all mankind. Napalming a Vietna­ made by another editor, the late Stanley encouraging. I would suppose that the ratio mese infant was as sad and horrible to him Walker when he was city editor of The New of philosophical idiots is higher in New York as a similar atrocity to an American baby. York Herald Tribune. He said running his City." Perhaps most attractive of all the qualities staff was like getting up every morning and Mr. Baggs, a lanky man over 6 feet tall, that endeared Bill Baggs to so many friends volunteering to be locked in a boxcarful of liked to tell people that he was "just a small and admirers, was his seemingly exhaust­ wild stallions. town boy from Georgia." Early in his career less sense of humor. He never caused any­ "Can you imagine what a terrible shape he appeared regularly on a Miami television body to cry, but he brought wholesome, heal­ the world would be in without newspapers?" program, on which he dressed in rural clothes ing, relaxing, uplifting laughter to many Baggs would ask, looking around the shop. and played the backwoods philosopher. thousands of people. His imaginary dialogues "Newspaper people would be unleashed upon WROTE ON MANY SUBJECTS between the racoon and the gobbler the world, and, surely, this would create That image faded in later years, however, out in the Everglades were as funny as Joel havoc in both factions." as his writings revealed his depth of interests Chandler Harris' classic conversations be­ Baggs puzzled people who saw baffiing on a wide range of subjects. In addition to tween Brer Rabbit and the Fox. paradox in a man who, on the one hand, his daily columns and editorials, he wrote On a December day in 1889, the South's was weighted with solemn honors and, on articles for The American Scholar, the greatest newspaperman, Henry Grady, 39, the other hand, once bemused an important Encyclopaedia Britannica and The New York was buried in Atlanta, Ga. A sorrowing friend civic gathering by driving up in a tractor Times Magazine. said of him: and giving an exhibition of barefoot toe- 1174 EXTENSIONS OF REMARKS · January 16, 1969 typing for an encore. The puzzlement was was, "This seems a waste of good liquor." ing side-wise ga,lt glves his garments a cer­ pa.rdona.ble in those who dld not understand And he wrote on the plane all the way home. tain aspect easier seen than described • • • his fine slmpllclty, that he was simply big That memory itself in two, and short hatless, he· is a. haberdasher's nightmare and enough to have and show so many facets. Big circuits into a better time-to the Baggs wh.o with a hat on his head, the effect is greatly enough to make the emptiness of now the puzzled pomposity and walked the streets of accentuated. Clothes-wise, Blll Baggs ls in worse. the Miami he loved, the city he called an air a class by himself." He was my friend and he puzzled me. He plant flourishing only on nerve and vision; Anything-wise, as Fuller knew, that was had an eerie elegance of the past within. I walked its streets With the flair and air o! a so often true, and the terribly empty office could never fully figure this, and gave up riverboat gambler striding the Texas deck of now is also in a class by itself, as was Baggs, trying, but I know this: It came from the the Southern Queen, and the time a moocher newspaperman. days of Henry Grady, William Allen White hit us on the bottom part of Flagler. "Bill!" A marmalade jar full of pencils on the and all the rest. And it showed up in his shouted the wino, happy for a friend indeed. cluttered desk that also holds a penny gum mannered style of writing, where he could Baggs gave him some change, but sud­ ball machine and-all sorts of things. and dld use phrases like "ink-stained denly remembered a gent we had just On the wall a framed, embroidered motto wretches" and so many of the cadences of greeted-a banker, back down the sidewalk. of his editorial creed: yesteryear that it could not have sounded (The moocher called Baggs "Bill" and the "A Nervous Man Shouldn't Be Here in the quite so right when he wrote it if something banker had called him "Mr. Baggs.") First Place." wasn't going on. "Hey!" Bill called back to his dignified Another sampler sums up a lot about Bill Millions of words he wrote, and caused banker friend, who paused and turned as Baggs. good action, but one of the hurts we have Baggs propelled his smelly buddy back and "Feel Free," it says. left now la the knowledge that, like a col­ introduced the two. Pictures cover the walls with no regard to umn started on yellow paper for a Friday "My friend so and so," said Baggs, intro­ precedence or pattern. Staffers in unflattering that won't come, it was, even with all that ducing the panhandler by name, "would like poses, personally inscribed pictures from only the beginning. to negotiate a $5 loan and I have recom­ presidents of the nation, personal friends, And many words were written about him. mended you. Give him $5. I am his co-signer." famous statesmen, lacerated politicians, other I think our calm acceptance of his accom­ Confused, and rather alarmed, the banker newspapermen. plishments ls itself a mystery. What happened gave the panhandler five singles; Baggs wrote Framed is a letter from Bernard Baruch , there, that a skinny kid reporter booming his own name on a matchbook cover and a typed note of H. L. Mencken's, and one around stopped in Miami, helped change the gave it to the banker, and all went on their stark graph in the typewriter, of what was face of a city and state and the thinking of way. to have been a humorous column of mythi­ a nation, was among other things nominated "Keeping funds in circulation is what cal cables intercepted in the basement of for a Nobel Peace Prize and left so many builds a. sound economy," Baggs told me the CIA. persons empty and simultaneously more ful­ solemnly as we strolled. And a Miami stroll In this era when even many newspapers filled, as he moved on? with him was adventure. Once we met a mer­ show a buttoned-up trend toward the orga­ In all the old clips we fumble through, a chant prince who bade us to his "private nizational mind, Bill Baggs was an editor sentence from a 1958 announcement of his club" for lunch. like this: His idea of breaking up the eternal coverage of the national political conventions "I insist you come to my club" Baggs said, poker game in photography was to get dealt jumps out at me. "and as my guest." in and bankrupt the participants. "Baggs knows all the Democrat and Re­ Straight-faced he led the tycoon to a. hole­ Over the years he was markedly unsuccess­ publican candidates personally," blithely in-the-wall hotdog joint, a place devoid of ful in this. It wasn't that he didn't know state the facts, "and is respected by them ostentation and named with fine understate­ poker. He always knew the odds, but he hated for his integrity and knowledge of national ment "Sloppy Joe's." to throw his hand away while the action was Courtly, always, Baggs sweepingly ordered going on ... political affairs." us a round of a red confection called fruit In a saddened city room, we think of his I think the calm acceptance of what is, punch, and each a chili-dog topped with raw wife and sons and other loved ones. Phones when you think of it, a true statement of onions. I'll say this for the tycoon-he tried ring from other city rooms and across the startling scope, ls the strangest thing of all. to eat his chili-dog, like a little man. nation newspapermen know that Bill Baggs (But, of all the clips on Baggs, my own Baggs said happily, exuding raw onion: is gone. favorite will forever remain the single sen­ "You should have seen this place before we When we mov.ed into this building from tence in a 1951 cutline of a picture showing enlarged and remodeled it." the other News building in ;1966, Baggs wrote Baggs at a political meeting. It says only, Who can wonder, then, at the bafflement of an editorial explaining editorial independ­ "Bill Baggs, in striped suit, appears uncon­ those who couldn't reconcile the "radical" ence of The News was not afiected, and part vinced.") infuriating them, and the country boy who of it said this : The multi-faceted man comes through in seemed so true-blue safe; the hopeless prac­ "Words come hard when you take leave of the varied tone stops of his typewriter and tical joker With the serious crusading editor, old friends and colleagues. Many of the ladies he never used a broadax if a scalpel nick who wrote one day of turkeys and racoons and gentlemen here at The News are going would do; he did not find humor ineffective who were downright garrulous, and the next to be working in the new venture, but many and had that in his quiver, too, and could say day flayed the falseness of a civic pride that others are going to be moving to other news­ this about what looked like a political stam­ played like ghettos were not there? papers or other jobs. pede, seeing the contrived landslide beneath: "We must know the social despondency of "And saying goodby is very unpleasant. "These political demonstrations are not to each other as well as the ambitions of each Friendships not often found in the working be taken seriously. They are as coldly calcu­ other if we are to end the despondency and life of modern society are rewards for spend­ lated a$ a bank robbery and, indeed, the ends reach for the ambitions," he wrote, knowing ing your years inside a newspaper ..." of both are similar." full well the wrath and woe involved in say­ Reward enough, for us, Bill Baggs. Take this, for wrapping up a crowd story ing unpopular things. with local color: Liberal, he loved race jokes, if they were "For a Florida-Miami football game in funny. Truly a boned.eep Southerner, his Gainesvme it was a relatively quiet day with views, obversely, outraged tradltion. Secure THE RIGHT TO STRIKE only six fist fights noted before the half, and in knowing men were brothers, he could josh times seem to be getting better as many of dead-serious crusaders by forming his own the whisky bottles have federal stamps on National Conference of Anti-Christians and HON. JOHN M. ASHBROOK them." Anti-Jews and name Harry Golden as pope. OF OHIO Yet, this was the same man who, scrawling In an age of ruthless do-gooders he could be IN THE HOUSE OF REPRESENTATIVES his copy in pencil aboard an airplane toward tolerant of bigots, and I think the thing that Washington hours after John Kennedy was kept him young was that his head and his Thursday, January 16, 1969 killed, and that day looking as oddly old as heart were friends. most days he looked oddly young, wrote: The seersucker suit was his trademark. He Mr. ASHBROOK. Mr. Speaker, the "John Fitzgerald Kennedy had learned a found it cheap and cool and the image fol­ Washington Star of January 13 carried great sorrow, which was that the soaring lowed practicality. His good friend Fuller a column by the nationally syndicated optimism of bold young men cannot quickly Warren, former Florida governor, described columnist and author, William F. Buck­ batter down the ramparts of old prejudices it excellently in a letter to the editor which ley, on an issue which has become a within the country or suspicions among na­ appeared in The News: subject of increasing concern. Entitled, tions ... you guess, or you believe, there is "BUI Baggs' selection of Miami's 10 worst "Labor Experience and Reform," the au­ wisdom in such sorrow ... for those who live dressed men is a sartorial sensation," Gov. thor explored the possibilities of correc­ on. Mr. Kennedy has left an obligation to Warren wrote. "The only way he could have finish what he began." improved it would have been to select him­ tive action to counter recent union And I remember the cold Washington self ... strikes which, in effect, paralyzed large drizzle and walking with him through it, "His immoderate modesty . . . should not cities. In this area, strikes by municipal after he talked to the late Mayor Robert King eliminate him . . . he could make Brooks and public employees have been espe­ High, and the late Sen. Robert F. Kennedy, Brothers best suit look like a crocus-sack cially disruptive as far as the welfare and all he said, as we later drank silently, thrown loosely over a scarecrow ... his lop- of the community is concerned. January 16, 1969 EXTENSIONS OF REMARKS 1175 In October, 1967, a Harris poll indi­ about $1.5 million per day. Impose a fine of of the aid loans given to "poverty na­ cated that the American people were such a dimension and, presto I-no strike. tions." But will the law pass? And in the current Why such minimal publicity to the "firmly opposed to strikes among school­ mood, is effective legislation possible? If you teachers, firemen, policemen, and work­ cannot get professors at Berkeley to obey terms and interest rates and what coun­ ers in defense industries." the law, can you get schoolteachers in New tries are eligible? Who will define a In Atlanta, Ga., several years ago 500 York City to obey the law? You cannot legis­ "poorest country?" By what criterion? firemen walked off their jobs in a strike late compliance. Mr. NcMamara? for immediate pay raises. City officials It is a worldwide problem. The big news Will foreign aid be "revitalized," or like moved fast and suspended the strikers out of Great Britain is that Barbara Castle, a shell game using sleight of hand merely without pay. Shifts were lengthened for the minister of productivity and employment be passed on to the American people un­ of Harold Wilson's Labor government, has der a different name? firemen who stayed on their jobs. Po­ proposed legislation which would seriously licemen helped man fire stations, while hamper just any old anybody's right to strike Mr. Speaker, I include Richard Hal­ the city began hiring replacements for just any old time. loran's two articles from the Washington strikers. One can imagine the shock. Barbara Cas­ Post for January 10 and 12, 1969, as In Detroit, Mich., when a pay raise for tle comes from the left wing of the Socialist follows: policemen was rejected, hundreds of Party. It ls as though John Kenneth Gal­ [From the Washington (D.C.) Post, Jan. 10, braith came out for a balanced budget, and 1969] officers called in sick and used other Eugene McCarthy for the resumption of the subterfuges in what amounted to a gen­ bombing of North Vietnam. NEON URGED To REVITALIZE FOREIGN AID eral strike. Among the proposals of Mrs. Castle is the (By Richard Halloran) New York City, is, of course, the best cooling-off period introduced in the Taft­ A presidential advisory committee of in­ illustration of the public welfare taking Hartley Act, denounced at the time as the fluential bankers, businessmen, educators, second place to the demands of public "slave labor act," and vetoed by President and prominent private citizens yesterday employee unions. In 1966 the subway Truman who incidentally won re-election a urged President-elect Nixon "to reorganize few months later. and revitalize U.S. development assistance" strike crippled the transportation setup The proposal with the biggest clout would to foreign nations. in the city. Later there followed the make work contracts legally enforceable by The committee, chaired by Cornell Univer­ teachers' walkout and that of the sani­ either party, so that if Management A con­ sity President Jazµes A. Perkins, warned that tatio!l workers. Untold hardships were tracted with Union B to do work over a two­ "in America today a mood of malaise and experienced by the very taxpayers who year period, and Union B struck before that withdrawal is enfeebling U.S. development footed the bill for the strikers' salaries. two-year period, A could go to the courts and assistance efforts." It is quite evident that the right to ask for damages. A committee report said that "reestablish­ It would appear elementary, except that ment of the U.S. role as a pace setter in strike has its limitations. In this era of one needs to remind oneself that elementary increasing crime, for instance, the peaceful development cooperation is a his­ rights have simply not existed in the labor toric imperative." right of the community to adequate union field for years, and it ls taking a long "The essential condition for strengthening police protection surely supersedes the hard experience with reality (conservatism's the U.S. development assistance program," demands of law-enforcement officers for best friend) to bring on reforms, which, the committee said, "is that the new Presi­ pay increases. This is all the more reason ironically, are now evolving in a labor gov­ dent commit himself to it as a key instru­ why adequate salaries for those provid­ ernment. ment of his foreign policy." The psychological ramifications of reform ing vital municipal services should be at this level are enormous. I learn that on NIXON NONCOMMITTAL given high priority in community arriving at a particular campus in Califor­ Mr. Nixon so far B.as been somewhat non­ budgets. nia, the Negro student ls ordered to join the committal on his foreign aid views. He has I include the above-mentioned article Black Students Union. If he declines, he is said: "Neither abroad nor at home can we by William F. Buckley, Jr., appearing in beaten until he changes his mind. Mutatis expect our civillzation to be secure in a sea the Washington Star of January 13, in mutandls, that ls the way we are all treated of angry exiles." in states that do not preserve the right to But he has also indicated that he intends the RECORD at this point. work. to be selective. "Let us help our friends who LABOR EXPERIENCE AND REFORM It is not surprising that those who favor help themselves," he has said, "but let us When the big thinkers met recently at compulsory unionism are as disposed to dis­ not help any who help our enemies." to arrange solutions for regard the rights of the community as they The presidential committee, appointed by the galactic problems of the world, George are the rights of the individual. Why not? President Johnson in March 1965, includes Kennan rose and asked meekly whether they On the general subject, we should hear from Vice President David E. shouldn't also concern themselves with some Mr. Nixon. Let us, however, give him a cool­ Bell, a former aid administrator; former problems seemingly minor, for instance the ing-off period, say 90 days? World Bank President Eugene R. Black; Tus­ failure to devise means of protecting cities kegee President Luther H. Foster; Rockefel­ from paralysis by striking labor unions. ler Foundation President J. George Harrar; I wasn't there but I can imagine the FOREIGN AID: A SHELL GAME Notre Dame University President Theodore hushed horror that greeted this sober res­ M. Hesburgh; and Hewlett-Packard President toration of hierarchy: We ought to figure out William R. Hewlett, associate of Undersecre­ what to do about Albert Shanker before we HON. JOHN R. RARICK tary of Defense-designate David Packard, can confidently dispose of the problem of OF LOUISIANA Bank of America President Rudolph A. Mao Tse-tung. IN THE HOUSE OF REPRESENTATIVES Peterson, Chase Manhattan Bank President And indeed there are stirrings on the David Rockefeller, and Columbia Broadcast­ horizon. Gov. , who su­ Thursday, January 16, 1969 ing System President Frank Stanton. perintended the passage of an anti-strike LABOR NOT INCLUDED law (the Taylor Law) through the legisla­ Mr. RARICK. Mr. Speaker, the tax­ ture in Albany a couple of years ago, im­ payers' resentment against the wasteful AFL-CIO President George Meany and mediately went on to ignore his own law in extravaganza called foreign aid has all Communications Workers of America Presi­ settling the New York City garbage strike but driven the program underground. A dent Joseph A. Beirne disassociated them­ last winter. con artist's reflex would be that what the selves from the report. There was no public That law, as originally contemplated, people do not see or keep up with, they explanation why. would have permitted a judge to set a fine The committee recommended that Mr. will not worry about. Nixon adopt a seven-point program. hefty enough to deter a defiant union en­ So foreign aid is now passe-the give­ gaged in an unlawful strike. But the State The first called for a "streamlined succes­ Assembly, controlled by Democrats sensible away program must be dressed up; that sor to the present Agency for International of the implications of "anti-union" legisla­ is, revitalized for easier acceptance by Development," possibly to be called the De­ tion, balked-and directed that the maxi­ the public as a responsible program for velopment Cooperation Fund. It should be mum penalty should be $10,000 a day. Spread the new President. authorized, the committee said, to make that out among 55,000 schoolteachers, and The question is: Will it be different, or long-term loans on liberal terms for capital you have the most exiguous deterrent in legal merely the same Fabian redistribution of assistance, to grant funds for technical as­ history. sistance, and to make grants for reconstruc­ the wealth by different people, using a tion and emergencies. The new idea is that an effort would be new approach to be called "loans to the made to compute the daily value of the serv­ The committee recommended that three ices denied, and let that figure set the limit. poorest countries," utilizing Mr. Mc­ present features of AID policy be carried for­ Applied to the school situation, the statis­ Namara's World Bank. ward--oomprehensive country analyses and ticians figure that the cost of _the ®rvicei? Yet, this ambitious program commits encouragement of self-help, integration of denied to New York schoolchildren was the U.S. taxpayers' dollars to 40 percent capital and technical assistance, and coordl- 1176 EXTENSIONS OF REMARKS January 16, 1969 nation Of agricultural assistance with other CHANGE IN OUTLOOK dialog on the value-added tax 1n his re­ aid. This will require some changes-a widen­ marks before the 73d annual Congress Secondly, the committee urged. that con­ ing, perhaps-in outlook, getting away from tributions to multilateral agencies be ex­ of American Industry of the National the strictly investment-return attitude and Association of Manufacturers in New panded. as rapidly a.a they can handle it. "The undertaking projects that may be riskier than U.S. should welcome the leadership of & those in past years. York City on December 6, 1968. Although strengthened World Bank" the report said. One official uses the city of Calcutta as an his statement is essentially critical, it LIMITED MILITARY Am analogy. It has about 35 per cent of Indian contains information of value to propo­ The separation Of military from develop­ real capital but is in grave danger of being nents as well as the opponents of the ment assistance was the committee's third choked to death because of the starvation proposal. I commend it to my colleagues, recommendation. Further, it urged. that mil­ and poverty surrounding it. and insert it at this point in the Record: If the owners of this real wealth do noth­ itary assistance be limited to countries where A VALUE-ADDED TAX FOR THE UNITED STATES­ ing about over-all economic development, there is an emergency and then only for a A NEGATIVE VIEW limited period. they stand to lose everything. The committee's fourth suggestion was the Some responsibility for persuading the (Remarks by Hon. Stanley S. Surrey, Assist­ establishment of an Overseas Investment richer nations of the magnitude of the prob­ ant Secretary of the Treasury, before the Corporation to take over investment guaran­ lem and the urgent need for large-scale ac­ 73d Annual Congress of American Industry tee and investment promotion functions tion will fall on the Pearson Commission. of the National Association of Manufac­ from AID. Organized by McNamara in ::.968, it is turers, New York, N.Y., December 6,. 1968.) The new corporation would also "under­ headed by former Canadian Prime Minister Tax meetings this year have found a new take new initiatives for more rapid extension Lester Pearson. It is making a long-range topic for discussion--or what is advertised as of private investment in less developed coun­ study how young nations develop to mark a new topic: Should the United States have tries." Mr. Nixon has strongly endorsed this out guidelines that will be valid to the end a value-added tax? The question appears to principle. of the century. be a new one when so phrased, especially The committee, fifthly, recommended During 1969, the Bank intends specifically since some speakers seldom bother to ex­ that U.S. support focus on assistance in agri­ to determine whether it can raise more funds plain what a value-added tax is and how culture, population control, strengthening in world capital markets, and be less depend­ it functions. But if the topic were phrased scientific and professional institutions, edu­ ent on the U.S. This has already started with more accurately "Should the United States cation, and broadening popular participa­ a loan last fall from West Germany. have a national sales tax?", then we would tion in development. The Bank will be looking at capital sources at once perceive we simply are carrying on The report's sixth point strongly urged in other European countries and Japan. The a discussion that has been with us for that funds for economic aid be restored at Bank borrowed $1.63 billion, for a net in­ three decades or more-and posing a question least to the share of national income reached crease (after repayments) of available funds to which the answer has consistently been in 1965, before the foreign aid program was totalling $600.6 million. in the negative. slashed. It said further that the U.S. should The Bank will try to increase the figures, The value-added tax properly comes in only "expand assistance in the future as our in­ though it declines to say how much, in 1969. as a subtopic: If the United States is to come and tax revenues rise." McNamara said he wants to double the have a national sales tax, should it take the Lastly, the committee called for long-term Bank's lending by 1973. In 1967 it lent $1.224 form of a value-added tax or some other innovations, including more access to funds billion. form, such as a retail tax, a wholesale tax or from the International Monetary Fund, the Another major problem is replenishment a manufacturers tax? Nor, really, when put International Development Association, and of funds for the International Development this way, is the subtopic a new one. Treasury the World Bank. Association (IDA), the Bank's arm for long­ Department files contain a lengthy analysis term, low or nominal interest loans to the of the value-added tax made in 1941, when [From the Washington (D.C.) Post, Jan. 12, poorest countries, as opposed to the more consideration was being given to the choice 1969] conventional, stricter terms of the Bank of tax measures to finance military expendi­ itself. tures. WORLD BANK SET To PUSH AID FOR POOR IDA is running low on funds and 18 coun­ NATIONS BACKGROUND-EUROPEAN USE OF VALUE-ADDED tries have promised to put up $1.2 billion to TAXE.S With economic aid efforts among the richer refill the coffer. Of this, the U.S. is commit­ nations faltering, the World Bank will be ted to 40 per cent. Congress, however, has What is new today is that the European among the main, perhaps the major, sources not appropriated the money and whether or countries are in the process of adopting of aid to developing nations this year. when it will remains IDA's major concern as value-added taxes-France has had one for · Robert S. McNamara, former Secretary of it heads into 1969. many years, Germany adopted one this year, Defense who became Bank President last Eight other countries have put up their the Netherlands, Sweden and Belgium will March, has set an ambitious program. He shares without waiting for the U.S. The do so next year, and so on. But a word of has spent his first months in office feeling agreement will remain in effect only if 12 perspective is in order. All of these countries his way along, formulating procedures, re­ come through and if total pledges come to have had a national sales tax of one form or organizing the bank staff, trying to open up $950 billion. The U.S. share is necessary for another for many years, usually the ineffi­ new sources of capital and turning the bank this. cient turnover tax. Hence the main topic for into new functions related to development. Still another major concern of the Bank is them therefore was not whether to have a Now, having been on the job for almost a to discover ways to break strangleholds that national sales tax but whether-in order for year, he is ready to push ahead, aides say. stop economical development. Financing them to harmonize their tax systems under In contrast, American economic assistance projects, says one omcial, is just not enough. the European Economic Community-they programs are a question mark, as are those The Bank must find ways to help entire should adopt the value-added form of sales of other advanced nations. economies to expand. tax as the common denominator. For rea­ President-elect Nixon has been cautious sons growing out of their political and tax in comments on aid. The mood of the Con­ histories, which in some countries involved gress promises to be no more enthusiastic the inability to effectively collect a mass than it has been the past couple of years income tax, they had already chosen to utilize when it cut the relatively modest aid pro­ A VALUE-ADDED TAX FOR THE high rate sales taxes. The significant point posals of the Johnson Administration. UNITED STATES-A NEGATIVE is that they were concerned with the sub­ VIEW topic, i.e., the form of a sales tax to achieve Am NEED MOUNTS harmonization, and not the main topic, Yet, the need for huge amounts of eco­ should there be a sales tax at all. They had nomic aid appear to be mounting in geo­ answered that question, as I have said, many metric proportion. The English novelist and HON. AL ULLMAN years before, for their national sales taxes go scholar Lord C. P. Snow, said in a recent OF OREGON back at least to post-World War I days. speech a sea of famine in less developed na­ IN THE !IOUSE OF REPRESENTATIVES Now we all know what is a retail sales tions will put the richer nations in a state Thursday, January 16, 1969 tax-forty-four States and some cities have of siege by the end of the century. this tax. We also know what is a wholesale He foresaw this unless richer nations make Mr. ULLMAN. Mr. Speaker, there has sales tax and we know what is a manufac­ concerted efforts to assist poor countries, the been considerable comment lately re­ turer's sales tax. What then is a value-added poor countries revolutionize their agricul­ garding the benefits and the drawbacks tax? A value-added tax is merely a complex tural production and the enormous rise in method of collecting a retail sales tax.1 Using of the value-added tax. This is particu­ the recent German tax as a model, let me world population be checked. larly relevant today because of the wide Among the foremost tasks of the World explain how it works: Bank, officials say, is to make the rich na­ use of that taxing system among the The German tax ls imposed at a 11 percent tions, and particularly their financiers, realize European Common Market countries and rate on al.most all sales of goods (and some the enormity of the developmental problem its effect on international trade policies. services) by any business. Let us start with and how it is in their best interests to Assistant Secretary of the Treasury attack it vigorously. Stanley Surrey has contributed to the Footnotes at end of speech. J(J,nuary 16, 1969 EXTENSIONS OF REMAR.l(S 1177 a manufacturer: He applies an -11 percent So the general question comes down to: rate income tax leads to tax induced dis­ rate to his total sales to flnd :the preliminary Should we reduce, for exa.ID.ple, our cor­ tortions in the :flow of capital that lowers tax due. From this he subtracts the taxes he porate tax to about 30 percent and make up the total emciency of the economy. Then has pa.id on bis purchases and the net is the $15 billion in revenue through a 3 per­ there are those, who merely stand by the payable to the Government. In essence, the cent sales tax? old assertion that the corporate income tax tax 1s thus on the "value-added" by him as What would the United States gain 1s so high as to be unfair to corporate represented by the difference between the through this change? Those who support equity owners. value of his total sales and the value of his Federal use of a value-added tax generally The arguments as to the "fairness" of tax­ total purchases. "Purchases" include all types start by stating that the United States ing corporate income and the incentive and of goods (and some services)--components should derive a larger portion of its revenue distributional effects of such taxation will either as raw materials or semi-processed from indirect taxes, that is, sales taxes. This continue as long as there is a corporate tax. goods; capital goods, such as plant machin­ view is often supported by resort to foreign Far be it for me to try to deny that a sepa­ ery and equipment; goods used up in manu­ experience. If certain foreign countries rely­ rate tax on corporate profits does not have facture; business furniture, etc. The manu­ ing heavily on indirect taxes are growing capital distributional and incentive effects. facturer, of course, will bill his wholesale relative to ours, the conclusion is drawn It does-and some could be corrected by ap­ customer for the 11 percent tax on the sales that the faster rate of growth is the result propriate revisions in our corporate tax rules. price of the articles he sells, just as the of the emphasis on indirect taxation. This But the real question is whether there a.re manufacturer was earlier billed 11 percent argument in turn is usually associated with advantages to corporate profits taxation on his purchases from his suppliers. The the idea that substitution of a tax on sales which offset the disadvantages. I believe so. tax is invoiced separately on all sales and is to raise part of the revenue now derived from The history of corporate income taxation in thus not hidden in the sales price. the corporate income tax would stimulate this and other industrialized nations has The process is repeated at the wholesale growth through enhancement of the profit­ shown that there is a significant tax-paying stage--the wholesaler pays the Government ability of investment in corporate equity. If capability inherent in the corporate struc­ 11 percent of his sales less the taxes paid foreign examples are not favorable, the en­ ture. And the taxation of corporations and previously by the wholesaler on his pur­ hancement of corporate investment to stim­ their dividends hardly seems to noticeably chases-and the wholesaler then bills the ulate growth is presented alone. dampen the advantages that investors find 11 percent tax to his customers. But of course But if one looks at the tax systems of in corporate equities. Moreover, if we desire no pyramiding should occur since the taxes various industrialized nations over a period to adjust our income tax structure to tilt it, paid by the wholesaler are kept apart from of time and relates them to the rate of or rebalance it, or what you will, so as to the price of the goods he purchased and he growth of their economies, there seems to favor investment, there are ways to accom­ can subtract this tax cost. The process is re­ be no relationship--or one strong enough to plish this-witness the investment credit-:­ peated once again at the retail stage--the be observed in the total effect of all factors­ without having to resort to an entirely new retailer pays the Government 11 percent of as is sometimes claimed to exist between the tax. his sales, less the taxes the retailer paid-and components of the tax system of a country Since proponents of a value-added tax for of course the retailer charges his customer and its economic growth. Of course, the tax the United States so often refer to the tax for the 11 percent tax. The process ends there systems of countries do have economic con­ system of foreign countries as a precedent if the retail sale is for personal consump­ sequences or President Johnson wouldn't or model for the use of indirect taxes, I won­ tion-food, an automobile, furniture, cloth­ have proposed the recently enacted sur­ der why, if they are so worried about the ing. But if a business concern buys the article charge to help restrain our overheated level of our corporr..te tax, that they so con­ for use in its business-say an automobile or economy. veniently ignore the corporate tax rates in a desk-the process begins again as the con­ But to say that heavy reliance on indirect the same countries. Heavy reliance of a coun­ cern will subtract the tax on the automobile taxes compared to direct taxes is a signifi­ try on indirect taxation does not mean low or desk from its tax bill . cant factor in econmnic growth is a naive corporate rates. Both Germany and France There is one additional important facet to view of a complex problem. As a matter of have a rate of over 50 percent on undistrib­ note: Under the German system, tax is due fact, one would be just as naive to say that uted corporate profits. The United King­ each month. Suppose a concern has paid the reason the United Kingdom has had a dom's rate is in the 40's. Moreover, we have more tax on its purchases than is due on relatively slow rate of growth in recent years reasonable assurance from United States the sales to its customers-its sales may be is because it raises a high proportion of its firms with international operations and slow, for example. The Government then revenues from indirect taxes. France is an­ through our data on the foreign tax credit makes a refund each month of any excess tax other country with a high interest tax that the effective rate of European corporate paid, so that the cost of carrying the value­ ratio-the highest in Europe-which has had income taxes is quite comparable to that of added tax is not borne by the concern beyond considerable problems in maintaining an the United States. a month or two. adequate growth rate over the years. One is tempted to deduce from this that All this adds up to an 11 percent retail On the other hand, we have been doing there is a type of Parkinson's law in taxa­ sales tax on personal consumption-the 11 pretty well in the United States as far as tion, to wit, for every type of taxation used percent value-added levy is designed to be growth is concerned-at least for the past by a Government the legislators will find passed along from concern to concern until eight years--and we do not have a national expenditure· needs that require raising the the consumer is reached and he is left with sales tax. While there were significant tax rates to the maximum politically tolera­ the tax. The 11 percent tax is not intended to changes in the Federal income taxes and ex­ ble level. In any case, anyone interested in enter into the price structure until that cises in the last eight years, the emphasis substitution of a value-added tax for part of final sale--until then it is a tax item that of our Federal revenue system on individual the corporate income tax should very care- 1 accompanies each sale, is kept separate on the and corporate income taxes was not changed. fully consider the overall tax burden in for­ books, and is so indicated. If the tax item is We believe the revisions made, especially the eign countries. He will find that every Euro­ not promptly moved along the business investment credit and the depreciation guide­ pean country (with Switzerland the only chain, the Government refunds it promptly. lines, are in considerable part responsible for exception) raises a far higher a.mount of (If a concern has to :finance the tax during our eight years of economic expansion. Dur­ taxes, in relation to GNP, than does t.he this month or two, this financing cost would ing the period from 1960 to June 1968 em­ United States. Is it because they have both enter into the price structure.) ployment increased by 13 Inillion persons income and sales taxes at the national level or 20 percent. Unemployment declined from and we have only the income taxes? SHOULD THE UNITED STATES HAVE A NATIONAL 6.7 percent of the labor force in 1961 to less Certain virtues have been claimed for the SALES TAX-DOMESTIC CONSIDERATIONS than 4 percent today. Business investment value-added tax in the name of "neutrality". Against this background, let us return to for new plant and equipment increased from Neutrality means a great many things to the main question. Should the United States less than $36 billion in 1960 to the current different people and it is surrounded with a have a national sales tax? Proponents of the level of $65 billion. And gross national pro­ highly favorable semantic aura. As best I can idea have two courses of action open. One is duct grew by 46 percent in terms of con­ judge, the claim for neutrality comes down to argue that our tax system should bring stant dollars between 1960 and the third on final analysis to the contention that all in more revenue and the added revenue quarter of this year. The business profits pic­ end-products and services would be taxed at should come through a sales tax. They sel­ ture has been bright indeed these eight the same rate. This only means that the dom take this route however. What argu­ years. Corporate profits after taxes were less value added tax like any other sales tax may ments there are for higher tax revenues come than $27 billion in 1960-the annual level for theoretically be designed-although this from those seeking greater Federal expendi­ the third quarter of 1963 was $51 billion. So it doesn't happen in practice--not to be selec­ tures to meet soc1al problems, and the pro­ is hard to see how one can complain about tive and not to discrlminate among goods ponents of v'alue-added sales tamtion are the absence of a sales tax on grounds of eco­ and services. For the business sector, the usually not in this camp, but rather most noinic growth here in the United States. neutrality of the value-added tax simply likely to be in the camp of reducing Federal Such facts as these naturally have re­ means the neutrality of the nontaxpayer­ expenditures. Moreover, if we need higher quired the more sophisticated proponents for the value-added tax is not designed as. a revenues, our Federal income tax system is of greater reliance on indirect taxation to tax on business, but merely casts the busi­ capable of producing those revenues. Ininimize pure growth a.s an argument for ness unit in the role of a collector o! taxes The other course of action is to say the changing the character CJ! our Federal tax from the ultimate consumer. sales tax should be substituted for part of system. A more subtle variation of the the income tax, generally the corporate tax. growth argument then is. that the corpo- Footnotes at end of speech. 1178 EXTENSIONS OF REMARKS January 16, 1969 Let us take a closer look at the supposed the resulting economic adjustments. The ini­ knowledge some increase in regressivity but advantages of neutrality. The value-added tial effects of substituting a value-added tax consider this a lesser disadvantage than the ta.x is claimed: to apply equal burdens on for part of the corporate income tax could purported advantages of the tax in fostering businesses in both profit and loss positions, thus be far from "neutral" as between dif­ economic growth and giving corporate in­ thus removing the corporate tax immunity ferent business firms and industries. vestors more "reasonable" tax treatment. But of a. loss enterprise. The claim is also ma.de Another argument for a. value-added tax this defense is only as good a.s those "pur­ that with a. value-added tax, unlike the used by some-indeed, it seems to be the ported advantages" and as shown above they corporate income tax, industries presently only argument that Professor H~rberger do not carry the needed weight. enjoying a preferred tax position as well as strongly advances for the tax 2-is its poten­ A third course is to minimize the regressiv­ those not occupying a preferred tax position tial as a.n instrument of fiexible fiscal policy. ity objection, either by arguing that the de~ will begin to pay the same tax. These claims The claim is made that there is only one gree of regressivity would not really be bur­ obscure what is now happening under the way to change its effect-raise the rate up densome or by suggesting that it could be corporate tax and what would happen in the or down-while there are many ways in removed by appropriate exemptions, par­ event of a switch to a value-added structure. which income taxes can be adjusted and thus ticularly one for food. There also is another The corporate tax now applies with differ­ controversy and delay are bound to ensue "antl-regressivity" approach to sales taxation ent weight among firms and industries de­ if the latter are used for countercyclical ad­ which could be used, although I personally pending upon their profit status and the tax justments. But this view underestimates the have not seen it mentioned in connection rules that have evolved. These differentials ability of legislators to find ways in which with value-added tax proposals. would be reduced pro tanto wth the lighten­ to vary a tax--0ne can readily imagine some This is the annual income tax credit (or ing of the corporate tax. Instead of being cor­ legislators insisting that only the value­ refund if no income tax is due) that has porate taxpayers these businesses would all added rates on "luxury goods" should be been introduced by six of the States with be intended to become, under the structure raised when a temporary tax increase is sales taxes. But a food exemption, or a. per­ of the value-added tax, as I have just indi­ needed, and so on. (Witness the recent sonal credit or refund system, would only cated, tax collectors from final consumers. French changes in which each of the four roughly compensate for the regressive fea­ In the same way a switch from the cor­ different rates in the French value-added ture of a vah1_e-added tax. The device of a porate tax to value-added taxation would re­ tax was changed by a different amount.) food exemption, for instance, would give a sult in different benefits as between corporate Moreover, the statement that necessary ad­ large advantage to the family which, for and noncorporate sectors and activities, the justments would be effected more speedily whatever reason, spent a larger proportion benefits of course going to those activities for a value-added tax than for an income tax of its income on food than another unit with now predominantly conducted in the. cor­ because the character of the income tax ad­ the same income. The device of a per capita porate form. There would be no relief for justments-should it be the individual tax credit or refund system would benefit most those now operating in the noncorporate or the corporate tax, should the progression those units which put a larger portion of form. All, however, would become collectors be altered, should exemption levels be their income to nontaxable uses, such as under the value-added tax as distinguished changed?, etc.-is always controversial and savings. from actual burden bearers. hence involves delay is simply wrong. The As a practical matter, any measure in­ We might also look more carefully from history of the 10 percent surcharge clearly stituted to minimize or remove the regres­ the standpoint of neutrality at what would demonstrates this. sive effect on consumers of a value-added happen to different industries and business The lengthy legislative gestation period for tax would still leave the tax less progressive units in their new role as tax collectors un­ that surcharge was caused by differences of than the corporate tax which it is intended der the value-added tax system. Elasticities opinion as to the economic outlook and fis­ to supplant. Here, of course, I am assuming of demand for different goods and services are cal policies, especially expenditure policy, and that a considerable portion of the corporate not the same, so that even a flat rate of not as to the details of the change as such. income tax is not shifted forward. value-added tax is not neutral except in a Indeed, in the whole period of eleven months The addition of a new mass Federal tax highly formal sense. In practice, consumer in which the surcharge was before the Con­ also has its costs in taxpayer compliance response and sales volume changes will vary gress, the Tax Committees spent less than and administration. The proponents of a as between industries, and this consequence one-half hour on the details of the surcharge value-added tax tend to gloss over this fac­ might not appeal to many who may have recommendation, and this was on the last tor-and indeed they would be well ad­ been initially beguiled by the neutrality day of the Conference Committee discussion. vised not to discuss it. They admit there argument. Moreover, the final product varied hardly at will be the start-up problems associated with In practice, also, "neutrality" in the vari­ all from the form recommended by the Pres­ any new tax. Since this is an admitted prob­ ous value-added tax countries has yielded to ident. The debate was entirely over the need lem, I will not elaborate on it except to say a structure of preferential rates, so that even for the surcharge and whether it would be that putting into effect a tax which is as the equal consumer tax rate claim of neu­ accompanied by expenditure restrictions­ pervasive as a value-added tax could be a trality would seem highly problematical. If and any consideration of a comparable real administrative task because of the large we l:ook at the political realities and the use change in a value added tax would have been number of units involved. of the value-added tax abroad, they discrim­ subject to exactly the same debate. Our prob­ Let us skip over the initial process and as­ inate among types of product and exempt lems relating to the use of the income tax sume that the tax ls in working order. The some activities. In view of this background for counter-cyclical purposes are no't prob­ first aspect to be noted ls that the number and the trend in State retail sales taxation, lems of technique or mechanics.a They are of returns to be handled would run between we would foresee some type of exemption for issues of fiscal policy at the political level­ 25 and 30 million a year, about a 25 percent tfood and medicine along with medical and differences between Presidents and Congress­ increase in the present level of returns now hospital services, education, and similar ac­ es over the fiscal policies to be pursued-and processed by the Internal Revenue Service. tivities in the event of any value-added tax the nature of the tax involved will not alter This figure assumes quarterly returns (as experiment in this country. No matter how those issues. in the case of excises) with exemption for desirable we may consider these exemptions, I thus can find no persuasive reasons to farms, medical services, and certain financial they detract from the purported neutrality shift to a national sales tax. The Conference services. Without these exemptions, the num­ of the value-added tax for a significant pro­ Report of the National Bureau of Economic ber of returns would be increased by an­ portion Of consumer expenditures. Research and the Brookings Institution in other 15 million. Taxpayers would be bur­ European value-added taxes reveal, as I 1964 on the subject of "The Role of Direct dened with a number of new tasks. If we have suggested, important departures from and Indirect Taxes in the Federal Revenue followed our present excise tax procedure "neutrality." The German tax, probably in System" ends with the same conclusion: "It for current payment, and I see no reason large degree because of technical problems, is hard, then, to find much support for more why we would not, they would have to com­ exempts financial institutions. The French reliance on indirect taxation in the record of pute and pay their tax liability to bank de­ tax exempts them, but includes a special the conference, even though son1e partici­ positories twice a month. Internal bookkeep­ tax on part of their activities. Small firms pants came, and left, with a disposition to­ ing of firms also would be increased by the are another special aspect. In France, small ward this view." need to keep records of the tax paid on busineeses can pay a fiat sum instead of Indeed, there are a number of persuasive purchases. computing tax on value added. The French reasons against such a shift. It would mean The United States all in all probably has tax has four rates: a normal rate; an in­ the substitution of a regressive tax for a the world's most carefully structured and creased rate for luxury items; an intermedi­ progressive tax and on equity grounds this administered income tax. Is it because it is ate rate for certain ut111ties, hospital care, would be a distinct step backwards. Value­ essentially our only national tax and there­ certain fOOd stuffs, etc.; and a reduced rate added tax proponents meet this objection in fore we work hard at continually improving for widely consumed foods, tourist hotels, three ways. One course is to argue that the it? The European countries must spread etc. The German tax has two rates: a general corporate tax itself ls shifted forward, so no their efforts over both an income tax and a 11 percent rate and a 5% percent rate for change in regressivity would be involved. This sales tax. The more children in a family, the agricultural products in general. argument of 100 percent forward shifting of less attention each gets. One should not overlook the fact that the the corporate tax is of course difficult to sus­ To sum up this part of the discussion, changes involved in adapting to a value­ tain, and if true would undermine the argu­ from a domestic point of view it is hard to added tax structure would have differing ment by some proponents that shifting to see how a national sales tax has anything impact on different sectors of the economy a value-added tax would increase after-tax and would require some time to complete corporate profits. Another course is to ac- Footnotes at end of speech. January 16, .1969 EXTENSIONS OF REMARKS 1179 to offer for our Federal tax system. It would had to carry the cost of paying the $3.50 Why then is it said that a country having add another large layer of work for taxpayers until it makes the sale to its customer, a value-added tax is fiavored thereby in its and the Internal Revenue Service without whe:r;eas under the retail tax the retailer pays international trade. Some business concerns any reduction in current workloads. There nothing until a sale is made. and groups have a simple, first level answer­ seem to be no offsetting economic benefits Clearly the Government is worse off be­ they say that a German exporter of machine to be gained that cannot be accomplished cause it is collecting the $5 in bits and pieces: too.is, for example, is exempted from an 11 without that step. $1.50 from the retailer; say $1.00 from the percent value-added tax if it sells for export Substitution of a sales tax for part of the wholesaler (suppose the manufacturer's price but not if it sells domestically, so that ex­ corporate income tax (or the individual in­ is $5~the wholesaler collects $3.50 from the ports are favored by the 11 percent differen­ come tax for that matter) would lessen the retailer but has paid the manufacturer $2.50, tial. equity of our Federal tax system.' And our leaving a net of $1.00); say $1.50 from the This simply means, however, that a Ger­ experience in recent years shows that the manufacturer and the rest from various sup­ man exporter of machine tools does not pay necessary degree of economic growth oan be pliers of the manufacturer. While the Gov­ a sales tax in Germany-but neither does a assured within the structure of our income ernment gets part of the $5 in earlier, it has United States exporter of ma.chine tools pay tax system. the administrative problems of dealing with a sales tax in the United States. Hence both Clearly, a proposal for a value-added tax all the other units in the productive process. in this respect are on the same basis. They would involve a political battle of the first These units in turn-wholesalers, manufac­ also say a German exporter receives a rebate order. The Democratic Party platform for turers and suppliers are all involved in paper of 11 percent of the cost of its purchases, 1968 stated: work under the value-added tax whereas they while the American exporter does not. But "The goals of our national tax policy must are free of it under the retail tax. The retailer the German exporter has paid taxes equal to be to distribute the burden of government itself has an additional burden under the that 11 percent rebate, while the American equitably among our citizens and to promote value-added, for it must keep track of pur­ exporter did not. So in this respect they also economic efficiency and stability. We have chases and sales alone whereas only sales end up on the same basis. placed major reliance on progressive taxes, records are involved in a retail sales tax. And so it is with imports-machine tools which are based on the democratic principle Hence it is really nonsense for a country coming into Germany must pay an 11 per~ of the ability to pay. We pledge ourselves to with an already functioning retail sales tax cent tax because machine tools produced in continue to rely on such taxes, and to con­ structure to add a value-added structure that Germany pay that tax. Machine tools com­ tinue to improve the way they are levied and collects in more complex and burdensome ing into the United States do not face a bor­ collected so that every American contributes fashion the amounts that could be collected der tax in the United States because machine to government in proportion to his ability under the retail sales tax procedure. tools produced in the United States do not to pay." Proponents of the value added tax like to pay such a tax.6 The AFL-CIO platform proposals presented say the tax is a "form of tax on business." Clearly we must look beyond these first to the two conventions in 1968 were specific This is pure obscurantism. It is a tax on level contentions to find an international on this issue: household and other non-business custom­ trade effect. Some proponents of a value­ "All efforts to make inroads on the progres­ ers and all the rest is paper work and ac­ added tax assert that while this system of sivity of the federal tax structure should be counting imposed on business to end up with border tax adjustments keeps that tax from repulsed. These include proposals for a na­ the retailer collecting the tax from the cus­ affecting international prices, we in the tional sales, transaction, or value-added tax." tomers. Maybe a. country that can't collect United States-who do not have a sales tax l.lany business groups and businesses a retail tax successfully takes out insurance but do have a. corporate tax--do not have would also oppose the tax. Our country against too much revenue being lost in poor comparable border tax adjustments to reflect would not be well-served by provoking such compliance at the retail level by collecting a that corporate tax. But this argument has a political battle for a tax that has so little tax at least at the wholesale and manufac­ validity only lf the corporate tax is shifted to offer to our tax system. turer's level. But a country that can collect forward in prices and thus, without the re­ All in all a sales tax is a second-best tax to a retail tax doesn't need all this wasteful bate, would affect the export price-a point an incom.e tax, and why do we need a second­ paraphernalia. we can consider in a moment. At any event, best tax? 5 INTERNATIONAL CONSIDERATIONS since the principal European countries also A RETAIL TAX IS PREFERABLE TO A VALUE-ADDED Let us now return oo our main topic­ have corporate taxes at about the same effec­ TAX Should the United States have a national tive level, they are in the same posture in this So, as to the major topic, "Should the sales tax? The discussion above states my regard and this argument thus has no weight. United States have a national sales tax?", I view that on the basis of domestic consider­ Let us move from these clearly inadequate would answer in the negative. But even if the ations such a step would not be desirable first level arguments of the proponents of a answer were yes, why should a value-added and would not be an improvement in our value-added tax to a further analysis, in tax be chosen as the form of the sales tax? Federal tax system. The next question is the context first of an increase in United Why not a retail sales tax? whether, if we accept this conclusion, should States tax revenues through a value-added In the United States, forty-four of our the answer nevertheles.s be altered because tax. States have retail sales taxes. So do some of of international considerations? Many pro­ If we assume that a newly imposed value­ our cities. Over 97 percent of our population ponents of a value-added tax would reply in added tax is fully reflected in domestic live in States with sales taxes. Over 97 per­ the affirmative, and indeed rely on interna­ prices-an assumption that is strengthened cent of our retail establishments are located tional considerations to differentiate the if the tax is introduced under full employ­ in States having such taxes. Thus, today, a present discussion of the need for a sales tax ment conditions since the monetary policy retail sales tax is being administered in the from the previous debate on that subject in accompanying such a tax change would pre­ United States-and successfully adminis­ this country. This reliance on international sumably be designed to permit that result­ tered. Therefore if the Federal tax system ls considerations is based on the structure of a but refunded or rebated on exports, there to have a national sales tax, why not simply value-added tax as aipplied to international would be no change in export prices, and use the retail tax structure we already have. trade. imports will be subject to a border tax ad­ We could adopt a national retail tax and In examining this structure, let us first justment in the same percentage as domes­ allow a uniform credit of so many points for consider exports. A country with a value­ tic prices have been increased. This should State sales taxes. States that wanted a higher added tax, while recognizing the effect of the leave the overall terms of international trade rate than the credit could "ride" the Federal tax on domestic prices, will attempt to pre­ as neutral as possible, although equal per­ tax. vent the tax from increasing export prices. It centage increases in prices of all domestic What is gained by having a value-added does so by not requiring a manufacturer (or and imported products and services may tax rather than a retail sales tax? As far as other exporter) to pay the value-added tax cause some shifts in demand between vari­ ous types of products and services. I can see, the answer is more paper work and on its exports. It also rebates to that manu­ administrative chores-and greater ~mpta­ facturer (or exporter) the value-added taxes Now we have to work into our analysis tions for exemptions and special rates. it has paid to its suppliers so that it does not the possible effects of reducing the corporate As pointed out earlier, the end result of a incur those tax costs for its exports. Step income tax and substituting the value-added value-added tax is that the retailer collects two, however, is not unique to exports, for tax which, of course, is really the major ob­ the tax from his customers. the manufacturer selling in the domestic jective of the value-added tax proponents. Let us assume a 5 percent rate. Under a 5 market also receives a rebate of its tax costs. In order for this substitution to advance our percent retail sales tax, a retailer collects 5 At the same time, the country will see that trade we must assume that the corporate percent of the sales price from its customers imports are subject to the value-added tax by tax was shifted forward to an appreciable and pays the full 5 percent to the Govern­ imposing a border tax on the imports equal extent and the lack of rebate for that tax ment. That's the end of the matter. Under a to that tax, thereby making imports subject on exports keeps the forward-shifting in the value-added tax, a retailer first pays 5 per­ to the same tax as domestically produced export price. On the other hand, the price­ cent to its wholesaler on goods purchased, goods. There is nothing mysterious or tricky increasing effect of the value-added tax then collects 5 percent from its customers on in this approach. We do the same in the through the forward-shifting of that tax is the retail price and pays the net difference United States for our single stage manufac­ kept out of the export price under the ex­ to the Government. Thus, if the wholesale turer's taxes on automobiles, cigarettes, al­ emption and rebate process. We here reach price is $70 and the retail price is $100 before cohol, and so on-namely, rebate the tax (if the unsettled controversy as to whether the tax, the retailer pays the wholesaler $3.50, previously paid) on that part of the output corporate tax is and if so, to what extent, collects $5 and pays $1.50 to the Government. which is exported and collect an equivalent Clearly the retailer is worse off, since it has excise tax on imports. Foot:iotes at end of article. 1180 EXTENSIONS OF REMARKS January 16, 1969 shifted forward in prices. I still take the absent intemational considerations the in other countries, the assumption we are consensus of economic thought as favoring United States should not adopt a sales tax. here making in this part of the discussion.) the view of a less than full shifting, and We in the United States want to retain Under present GATT rules, border adjust­ for many economists considerably less, so our freedom of action to maintain a tax sys­ ments are permitted for indirect taxes-sales that the possible benefit for trade would be tem of our own design. We are glad to take and excise taxes--but not for other taxes. related to the degree of shifting. ideas from other countries. However, we are, The United States this year asked for and Let us try another avenue of analysis. The and rightly should be, independent in want­ obtained the establishment of a Working value-added tax, as we earlier noted, is ing to select the types of taxes, rates, exemp­ Party to reexamine the whole aspect of border passed forward in an accounting sense and tions, and other features, and the division in adjustments under GATT. expected also to be shifted forward in an our Federal system of taxing powers and tax One aspect of the re-examination could economic sense through a price rise. But decisions between the various levels of gov­ well be to permit countries not having a high suppose it ls not fully shifted forward in ernment. After all, the American Revolution indirect tax system permanently to adopt prices due to market conditions. Then a was fought in part to win the right to deter­ within limit'S border adjustments independ­ manufacturer forced to absorb some of the mine our own tax system. ent of their domestic tax structure if they tax effects on its domestic sales and thus re­ On the other hand, we do live in a world so desire. It could result also in imposing duce its profits, but not having that conse­ economy. Our balance of trade is important. some upper limits on the total border adjust­ quence on its exempted export sales, could We need to be aware of the extent to which ments countries with indirect tax SY"!tems well turn more of its energies to exporting its the tax systems and nontax measures of could make. This approach would provide an product and thereby enlarge the country's other countries can affect our exports and appropriate international accommodation to international trade. Similarly, foreigners ex­ imports and our general trade position. the basic question we are considering, that porting the same product to the value-added The question then comes down to this: of freedom for domestic tax action without tax country wlll suffer lower profits and be How can the United States-or other coun­ prejudicing a country's trade position.10 less induced to push those exports. tries-continue to exercise full freedom in If this be so, a country with a value-added the design of our domestic tax system, con­ CONCLUSION tax would have some trade advantage sistent with our notions of tax equity, tax Our existing Federal tax system, in vary­ through such an incentive to exports and emciency, proper economic growth and all ing degrees, provides equity, incentives, cer­ the disincentive for imports. The situation the other relevant considerations, and still tainty, and familiarity. It is by no means can vary from product to product depending live on trade competitive terms with coun­ perfect but any change should be in the di­ on price elasticities. Moreover, as respects tries which, exercising a similar freedom, rection of improvement, balancing the vari­ the European tax systems, the advantage choose to have high rate sales taxes? ous goals it seeks to achieve. Viewed from can have disappeared under earlier exchange Under these circumstances, an appropri­ the standpoint of domestic considerations rate and other international adjustments.7 ate solution for us would be to adopt border the addition of a national sales tax would We could also add the comment that given adjustments, limited to charges on imports clearly not improve our present Federal tax full employment, the absence of full forward or rebates on exports or both, rather than system. And, if a national sales tax were ever shifting would presumably be due to a rea­ to overturn and revamp our existing tax sys­ thought desirable, it should take the form sonably tough monetary policy. If' it takes tem which has evolved over many decades to of a retail tax and not a value-added tax. such a policy to produce a trade advantage, meet our needs. These border adjustments In this light, to change major parts of our then presumably the advantage could also would not be part of a value-added tax or tax system and adopt a value-added tax or be obtained by the same monetary policy other sales tax, and would not involve any other form of national sales tax for the f>ri­ without the accompanying resort to the changes in domestic taxes. Rather, they mary purpose of encouraging exports or dis­ value-added tax. And finally, for the trade would simply be border adjustments at the couraging imports would mean incurring se­ advantage to be significant the rate of value­ rate thought appropriate in the existing in­ vere losses as to several other equally or more added tax must be quite high, at levels com­ ternational setting. Since there would be important objectives.u mensurate with the European rates. But a no change in the domestic tax system and Such a change is clearly undesirable. It is value-added tax applied in the United States hence in the domestic price structure, a also unnecessary because there exists an al­ at such levels would swamp our existing tax border charge on imports would tend to raise ternative which permits accomplishment of system-even a 10 percent rate would mean the prices of imports to American buyers or both goals-preservation of our existing tax a revenue yield considerably greater than our reduce the profits of foreign sellers, thus im­ system and improvement in our trade posi­ total corporate tax. proving the competitive position of United tion if we consider it disadvantaged because In this view, to complete this discussion, States producers and discouraging imports. other countries have high indirect taxes. there can be some trade advantage in having On exports, the rebates would tend to lower That alternative consists in adopting limited a value-added tax in a tax system. What then the prices of United States goods in world border adjustments for the United States should the United States do? In considering markets or increase the profits of American that are not dependent on our adopting a this question, we should note that the advan­ exporters and thus tend to increase exports. value-added tax. The present GATT review tage would not be unique to the value-added These border adjustments could be adminis­ is one way of reaching an international trade tax. It would exist, under this analysis, for tered by the Customs Bureau. accommodation that would produce this any type of sales tax where that tax-be it It is interesting to note that Germany in method of achieving world-wide tax har­ a value-added tax, retail tax, wholesale tax, the converse situation-when it desired to monization combined with freedom of choice or manufacturer's tax-could not be fully dampen its trade surplus-has recently done and absence of trade disadvantage in struc­ passed forward in price. Business groups as­ just this. It has adopted border adjust­ turing domestic tax systems. serting there are trade advantages for the ments-independent of its tax system-by FOOTNOTES European countries with value-added (and taxing its exports at a 4 percent rate and 1 The authorities recognize the value-ad­ formerly turnover) taxes have not fully per­ reducing the compensating import tax from ded tax for what it is--a sales tax. For ex­ ceived this and hence have often excluded 11 percent to a net 7 percent (though still ample, a publication entitled Tax Harmoni­ the British who have a wholesale tax, or the allowing an 11 percent credit to the importer zation in Europe and U.S. Business pub­ Canadians who have a manufacturer's tax, on his resale) . lished this year by the Tax Foundation con­ from the list of trade-favored countries. But Under the German view of its tax system, tains the fiat statement "The consumption the presence of the paraphernalia of border with its 11 percent value-added tax, "neu­ type of value-added tax (one in which capi­ tax rebates and compensating import taxes trality" as to exports and imports-in the tal equipment items are deductible) can be under a value-added tax and its absence sense of attempting not to have its domestic described as a retail sales tax" A look at the under a retail sales tax or any other single tax system affect the prices of exports of index of a recent public finance book (Mod­ stage tax (since all the explicit parapher­ favor imports--existed at an exemption for ern Public Finance by Bernard P. Herber, nalia are not needed but are implicit in the exports (and. an 11 percent rebate on pur­ Richard D. Irwin, Inc., Homewood, Illinois, single stage system) should not prevent them chases representing taxes paid) and an 11 1967) for value-added tax encounters the from recognizing that if indirect taxes do percent tax on imports. A 4 percent tax on familiar instruction, see "Sales taxes." produce a trade advantage, then that advan­ exports and a 7 percent tax on imports-in 2 Harberger, A Federal Tax on Value Ad­ tage will exist whether the structure of the effect a 4-point burden on exports and a 4- ded, in The Taxpayers Stake in Tax Reform indire<:t tax be a multiple or single stage sales point benefit to imports-is thus an unneu­ (Chamber of Commerce of the United States, tax. tral posture favorable to other countries. In 1968)' p. 21. Now, back to the question of what the the United States national tax system with 3 The recent Brookings book, Agenda for United States should do to offset the trade the absence of a national sales tax, "neu­ the Nation, contains in an article by Herbert advantage considered to accrue to a country trality" in the indirect tax area exist at a Stein a proposal to use systematically a posi­ with a relatively high sales tax system. some zero tax on exports (and no rebate) and a tive, negative, or zero surcharge on income Europeans say the answer is simple-let the zero charge on imports.8 If we were to adopt taxes as a countercyclical device. United States adopt a sales tax. But this a 4 percent export rebate and a 4 percent im­ ' If we are looking around for taxes to be answer would mean that those countries with port charge, then we would achieve an un­ substituted for, it would seem more appro­ a sales tax would be imposing their tax will neutral posture vis-a-vis our domestic in­ priate to offer the Federal payroll taxes as on the rest of the world-and in effect inter­ direct tax system to protect our trade.0 (We a candidate rather than the income taxes. vening to affect the free domestic choice of a would be taking such a posture because we 15 Professor John Due, an acknowledged au­ country's tax structure. felt our trade position was adversely affected thority on sales taxes, has concluded: "On Remember, our hypothesis here is that by the existence per se of high indirect taxes the whole, the same tax must be regarded as January 16, 19'69 EXTENSIONS OF REMARKS . 1181 a second-best tax-one to be employed only a tax a method of defending itself without it can be observed that no one performed 1f various circumstances make complete re­ having to change its domestic tax structure. more creditably (and more consistently so) liance on income and other more suitable If the existence of a high indirect tax per se in the past eight years than Mr. O'Brien. taxes undesirable. A carefully designed sales does not so help the trade position, then Consider first his unenviable assignments. tax ls not perhaps as objectionable as it was there is no point to our considering a value­ Congressional relations, over which he pre­ once regarded; it offers definite advantages added tax or urging a GATT change. sided, were especially difiicult in the Ken­ over widespread excise tax systems, with their 11 Foreign trade, although of substantial nedy years; Democratic Party affairs, which inevitable discrimination among various con­ importance, represents only a small part of he sought to straighten out, were a desperate sumers and business firms and their tendency U.S. gross national product. U.S. exports, for mess in the autumn of 1968; and the Post to distort consumption patterns; and it is example, have accounted in recent years for Office Department, where he served as Post­ definitely superior to high rate 'business' about 5.8 percent of GNP. Exports for most master General, is a desperate mess at any taxes with uncertain incidence and possible other industrial countries represent much time. However, in these three areas of re­ serious economic effects. But it must be re­ larger percentages of their GNP's-between sponsibility, Mr. O'Brien managed to prod the garded as secondary to income taxation, in two and four times as large as the U.S. per­ Kennedy-Johnson programs along, to restore terms of usually accepted standards of taxa­ centage for Britain, Canada, France, West the Party to an unexpected measure of tion." Due, Sales Taxation (1957) 41. Germany, Italy, Japan, and Sweden, for ex­ health, and to undertake the first serious 0 See the statement of Roy A. Wentz, Chief ample. Thus these other countries have work in living memory on the reform of our Counsel, Federal and Foreign Tax Division, stronger reasons to tailor their basic tax sys­ postal system. E. I. du Pont de Nemours & Company, to the tems to reflect their dependence on foreign Underlying these accomplishments, and National Foreign Trade Convention, Nov. 20, trade. Even so, the origin of their reliance perhaps accounting for them, there has been 1968, pointing this out. on high indirect taxes traces to domestic tax a special quality to Mr. O'Brien's service. 7 The Europeans could be deriving a pres­ considerations. When he came to Washington, he was iden­ ent advantage in substituting value-added tified primarily as a political aide to John F. taxes for their existing turnover taxes. Thus, Kennedy, but for all his loyalty and canni­ the export rebates under the prior turnover LAWRENCE F. O'BRIEN STEPS DOWN ness in this cause, he also proved over the taxes probably undercompensated exporters years and under the most trying of circum­ for the costs of those taxes, so that the in­ stances that he had a strong sense of duty troduction of the full compensation pos­ HON. EDWARD P. BOLAND both to the Presidency and to his Party and sible under the value-added tax structure, OF MASSACHUSE.'TI'S that his ambitions were firmly associated without a concomitant change in the do­ with the success of those two institutions as mestic price level, could assist those exports. IN THE HOUSE OF REPRESENTATIVES instruments of government. Others among And in countries (Sweden) where the exist­ Thursday, January 16, 1969 the slain President's entourage viewed their ing retail tax did not exempt sales of goods role and their obligations differently-which consumed by businesses, substitution ·of a Mr. BOLAND. Mr. Speaker, Lawrence is not to judge which was better or worse, value-added tax would have a similar effect. F. O'Brien, the remarkably able and but only to acknowledge a difference of ap­ 8 The text here oversimplifies the U.S. tax astute assistant to Presidents Kennedy proach and one for which Larry O'Brien took system. We do have selective national ex­ and Johnson, is leaving political life to a lot of heat (and some abuse) when he cises, e.g., on gasoline, automobiles, tele­ assume the presidency of a New York fi­ stayed on to help President Johnson in 1964. phone use, and State and local retail taxes, nancial house. As an intimate and trusted He agonized over the decision to join Robert and the like. In many cases these taxes en­ Kennedy in his primary campaign last year ter into the cost of doing business and hence Presidential adviser over the past 8 years, after President Johnson had bowed out, and affect export prices and favor imports. On as White House director of congressional he took heat for that too. He ended up serv­ the average an export rebate around 2 or relations, as Postmaster General, Mr. ing Hubert Humphrey well. Mr. O'Brien, in 2¥2 percent would reflect these tax costs and O'Brien has played a major role in the short, distinguished himself by behaving as keep them out of world prices; there could achievement of major administrative and an honorable and disinterested professional also be an equivalent 2 or 2¥2 percent im­ legislative goals since 1960. I take pride politician. Not the least of his contributions port tax. The impact of these tax costs on to his Party and to government in general in my personal friendship with Mr. has been to help enhance the meaning of the various product lines differs of course, O'Brien and his family. I extend my very with the range running from about 1 Y2 per­ that term. cent to 4 percent of export sales prices. Sim­ best wishes to him, his charming wife, ilar situations exist for some other coun­ Elva, and his son, Lawrence, Jr., for con­ tries. tinued success. FINANCIAL PROBLEMS OF SMALL 9 The recent French change is of a different yesterday pub­ COLLEGES order from the German action. The French lished an editorial paying tribute to Mr. repealed a 4 ~ percent payroll tax paid by O'Brien and outlining his distinguished employers, which had gone to general reve­ political career in Washington. With per­ HON. FRED SCHWENGEL nues, and increased the value-added tax rates OF IOWA from 1 to 5 percentage points on various mission, Mr. Speaker, I include this edi­ goods to make up the loss in revenue. The torial in the RECORD, as follows: IN THE HOUSE OF REPRESENTATIVES purpose was to stimulate French export MR. O'BRIEN STEPS DOWN Thursday, January 16, 1969 trade. Initially, the payroll and value-added So much history-painful, tragic, and re­ tax changes would aid French exports and warding by turn-has been crammed into the Mr. SCHWENGEL. Mr. Speaker, the dampen imports provided businesses adjust past eight years, that it is sometimes diffi­ financial problems faced by small colleges prices to reflect repeal of the 4.25 percent cult to remember that only eight years, or were recently discussed in an excellent wage tax. If the wage tax repeal reduces costs two presidential terms, have gone by since guest editorial in the Davenport Times­ by, say, 2 percent and the value-added tax John F. Kennedy was sworn into office. For Democrat by Msgr. Sebastian G. Menke, is raised on the average by the same percent, those Democrats who came to town in 1961 the result would be that prices in France of president of St. Ambrose College. and who stayed, the more gratifying recollec­ Monsignor Menke emphasizes the fact domestically produced products would be tions must be of legislative and executive unchanged, the price of imports (assuming accomplishment beyond what anyone that enrollment in Iowa's private coll~ges no backward shifting to the foreign sup­ thought possible at the time. The darker has not kept pace with enrollments at plier) would increase by 2 percent, and memories are obvious too: the murder of the the State's public institutions. One phase prices of products exported would decline by President and his brother, the deepening of the problem, as he points out, is the 2 percent. morass of the war, the turn in the country fact that increasing tuition rates have Actual results could be much less favorable at large toward racial and political violence, than the above. The chances of French busi­ the tendency of excluding students from and the development of savage confiict with­ middle- and low-income families. I nessmen (faced with cost increase pressures) in the Democratic Party. Lawrence F. O'Brien, reducing prices by the full amount of the who yesterday ended his service as Chairman have long been concerned about this very wage tax repeal are problematical, even of the Democratic National Committee, wit­ problem, and have offered legislation in though pressured to do so by the Govern­ nessed all these events-but he was more the form of the Iowa plan. The Iowa ment. The transportation, gas, and elec­ than a witness. Mr. O'Brien contributed plan would help to meet some of the tricity price increases also imposed will be greatly to the achievements ~f his Party in needs of the private colleges through a offsets to part of the wage tax repeal. (British two administrations, and he also distin­ combination of a savings program with exporters picked up a lot of the pound's guished himself by his response to its set­ devaluation by raising their export prices tax credit for funds invested in the pro­ backs and sorrows. gram, and a loan program through our in British money units.) It is tempting-but unthinkable-to be­ io In essence the GATT discussion comes come a little bit sentimental about this private lending institutions. I will shortly down to the United States asserting that if tough, amiable and dedicated charter mem­ be reintroducing this legislation. the existence of a high indirect tax per se ber of what used to be called the Irish Mafia. Because of the importance of this helps the trade position of a country, then Still, without too much hearts-and-flowers or problem, I would like to share Monsignor GATT should permit a country without such accompaniment by the Mantovani Strings, Menke's article with you, and under 1182 EXTENSIONS OF REMARKS January 16, 1969 unanimous consent insert it in the though business and industry have increased the accent has been entirely on community RECORD at this point: their giving to private colleges, their con­ service, largely through sports, all those tributions have not kept pace with the in­ PROBLEMS OF THE SMALL COLLEGE years. creasing costs. Most college endowments a.re The organization is the Prospect Hill Yel­ (NoTE.-Today's guest. editorial is by not large enough to provide even a small lowjackets Athletic Club. Msgr. Sebastian G. Menke, who is in his fifth part of the cost. some foundations have It started with four boys, meeting under year as president of St. Ambrose College, turned to other causes with the result that a street light at Travis and Navidad on a Davenport. He is president of the Iowa As­ their share of support has decreased. sociation of College Presidents and also of cold night Jan. 20, 1932. There are now 25 What all these statements imply is that members, not counting the la.dies' auxiliary, the National Associt aion of Diocesan Col­ it is becoming progressively more difficult leges.) with an athletic setup on Dartmouth that for the private colleges to· continue provid­ served 300 boys between six and 16 during In the fall of 1968 there were 30 private ing education for a large percentage of the four-year colleges in Iowa. With one excep­ 1968 and which promoted and operated 12 students of Iowa. In the past they have pro­ Little League baseball teams, 19 junior soc­ tion these could be described as small in vided higher education at no cost to the comparison with the state universities. These cer teams and two Pop Warner junior foot­ state to citizens in practically every area of ball clubs. colleges had an enrollment of 36,124 stu­ the state. The variety of traditions in these dents. There were six private junior colleges Since 1958, when the Yellowjackets got out institutions has provided great diversity out grubbed mesquite, smoothed athletic that enrolled 3,590 students. Since the pub­ in higher education in the state. The fa.ct lic universities enroll 46,665 and the area fields and built a concession and equipment that they are small has made it possible for house and stands, uncounted thousands of community colleges 12,405, the private col­ many students to successfully complete leges enroll about 40 per cent of the total youngsters in that area, where the kids their college degree who might not have been loved to play but needed a place and super­ number of 100,000 students in the state. able to do so at larger institutions. Since 1966 the increase in enrollment at vision, have grown up under the wings of the The question is: Do the citizens of Iowa Yellowjackets. the private colleges has not kept pace with want the private colleges to continue pro­ that at the public inst itutions. The reason viding the services they have provided in TWO CHARTER MEMBERS ACTIVE for this change is basically economic. Since the past? We hope for reasons of variety Two of the four original members of the the tuition at private colleges accounts for and economy they will do so. athletic club are still extremely active. Fer­ 70-75 per cent of the total cost of education nando in contrast to 25 per cent at the public insti­ Arellano and Blademar Torres have tutions, the increasing costs of education been officers at various stages and have been have resulted in accelerated tuition rates at ramrods in all club activities. Gilbert Cerda the private colleges. Apparently in 1966 these and Margll Hernandez were the other charter THIRTY-SEVEN YEARS OF members. Hernandez now lives in California. tuition rates had reached a level which GOOD WORK made many students decide they could not Fred Herrera is the current president, afford the cost of education at a private George McWillia.ms and Mario Guillen vice college. HON. HENRY B. GONZALEZ presidents, Johnny Zepeda secretary, Frank The problem of increasing costs of higher Sierra treasurer, with Albert Alvarado as his o:r TEXAS education is one that affects all institutions assistant. both public and private. It reflects itself in IN THE HOUSE OF REPRESENTATIVES Lionel Medina handles public relations­ to give you an idea how this group has the increased budgetary requests of the part Thursday~ January 16, 1969 of the public institutions, that is, $77 mil­ expanded and modernized. Eulalio Gamboa lion for the public universities and $4 mil­ Mr. GONZALEZ. Mr. Speaker, recently is sergeant-at-arms, Alex Johnson club cus­ lion for the area community colleges. The in my hometown of San Antonio a sig­ todian. Torres is senior member of a board request of $15 million for tuition grants to nificant event took place. It was an event that includes Leonard Ybarra and Albert the students in the private colleges seems Preciado. that had both personal as well as com­ The unusual departui·e of the Yellow­ like a modest proposal in comparison. munity -significance to me. It has to do Because of increased tuition costs the pri­ jackets into the social whirl was prompted vate colleges have been forced to spend more with a group of men who more or less in part by the need to get everyqody to­ money for recruiting students. Since many of belong to my generation, men whom I gether and review the club's work over the these students come from out of state, these have known well and with some of whom years, under relaxed and pleasant condi­ recruiting efforts become more difficult as I went to school. It has to do with a group tion, says Arellano. Admission will be by neighboring states develop their own pro­ of men who are of modest circumstance, invitation only. Alfonso Monteleone will be grams of scholarship and grants. in fact, of hwnble and poor origin and master of ceremonies. The Anselmo Martinez Because of the high cost of tuition, pri­ orchestra wlll play. There will be a lot of condition. But they are men who are reminiscing on the sidelines. vate colleges are in danger of becoming ex­ setting a pace that can well be emulated clusive schools since only families from the The nice part of it all is that the club is higher income group can afford the costs throughout our country. · still fulfilling the intent of that first meet­ at these institutions. This situation is highly In a day and time in which we look ing~ To provide boys with an opportunity undesirable in a democratic society. The pri­ for governmental leadership to elicit to participate in sport. vate colleges have tried to avoid becoming community self-help it is most gratify­ BLOSSOMED OUT AFTER THE WAR exclusive by giving extensive grants and ing to see these members of the com­ The original Yellowjackets quickly ex­ loans to students from lower income fami­ munity, through their initiative, reverse panded their club, forming teams and par­ lies. Last year the private colleges gave more this trend and provide not only leader­ ticipating in basketball, baseball, soccer and than $6 million in grants and loans of this football, joining leagues such as the city rec­ kind. ship but practical and feasible joint ef­ fort in raising the community standards reation, Spanish-American and various Sun­ In order to remain competitive in re­ day School leagues active in those days. The cruiting faculty members, the private col­ and helping our youth. charter members recall that their opponents leges must continue to increase faculty sal­ Last week, in the popular San An­ included teams whose names ring a bell with aries. Because faculty salaries generally tonio Light, one of San Antonio's three a lot of San Antonio sports followers of the were lower than those for comparable skills, great dailies, Harold Scherwitz, a widely era: Prospect Hill Triangles, Arbor Aggies, they needed to be increased more rapidly. known and read sports commentator and Moonglow A.C., Riverside Cats, Prospect Hill The recommendation of the American As­ columnist wrote a splendid article about Collegiates, Prospect Hill Rattlers, Woodlawn sociation of University Professors has been this group. Mudhens, Twin Parks Tigers, Red Bridge a 7 percent annual increase. Since the cost Aces, Denver Heights Tigers, Maverick Cubs, of living increased about 4.5 percent during Mr. Speaker, without further ado, 1 Flying Mustangs, East Side Rockets, Roose­ the past year, the real increase becomes less insert the article by Harold Scherwitz, velt Cubs, Roosevelt Tigers and many others. by that amount. If the private colleges do appearing in the San Antonio Light .edi­ World War II interrupted activities, with not employ and reta.in qualified personnel, tion of January 9, 1969, in the RECORD most of the boys in the service. Those who they weaken their program and become less at this point: came back did so with a keener sense of com­ attractive to prospective students. THIRTY-SEVEN YEARS OF GOOD WORK munity responsibility and a desire to help Changes occurring in the educational the youngsters of their neighborhood. The world have made it necessary for colleges (By Harold Scherwitz) Yellowjackets bounced back into business to provide services they did not formerly pro­ There'll be a semi-formal dance at Agudas with a slogan "Youth Development Through vide. counseling services, computer serv­ Achim Hall on Donaldson at 8:30 p.m. Sat­ Sports." Leagues were started, a Little.League ices, etc., have added considerably to the urday and thereby hangs an unusual tale. charter secured and, after months of hard cost of operation without increasing the in­ The organization that puts it on ls not a work in spare time and a lot of personal sac­ come. social group. Over 37 busy years the social rifice, a beautiful playground loomed in the To raise the 25 percent of the cost of ed­ angle has been practically non-existent. lonely mesquite brakes on Dartmouth. ucation which is not derived from tuition While the members and their wives, orga­ Members take great pride in that park and has become increasingly more difficult. Even nized into an auxiliary, have been close, in their club's work, which now includes a January 16, 1969 EXTENSIONS OF REMARKS 1183· scholarship fund to help boys go to college He acted with great boldness and common and the supersonic F-102 Delta Dagger and such community projects as a Christ­ sense and, in doing so, saved the postal serv­ interceptors. mas basket drive. Thirty-five bushel baskets ice from imminent catastrophe. One year after receiving the F-102, the of groceries were distributed to needy fam­ During our many consultations with Post­ 149th won second place honors in the annual ilies last Christmas. ma.Ster General Watson, we never came away William Tell Gunnery and Missile Meet at Says public relations director Medina: unsatisfied. This is not to say that we always Tyndall AFB, Florida. "This celebration should bring back many got what we wanted. Far from it. But we The years following brought many addi­ pleasant memories. The whole thing shows always got a fair and compassionate hearing tional honors for the 149th, which includes: how much can be accomplished without fan­ and a straight answer. 1964: The Spatz Trophy (Outstanding fare by a few." If he could not do all that we wanted him Flying Unit). · The Light's sports staff, which followed to do, he told us why, without evasion or 1964: The National Guard Outstanding the building of the athletic plant on Dart­ equivocation. He decided in our favor far Unit (Operational Readiness). mouth closely and came to know these dedi­ more often than he decided against us, and 1966: Missile Safety. cated men of the Yellowjackets well, adds its always we were able to salvage something of 1967: ADC "A" Award. congratulations on 37 years well spent. And value, even from an adverse decision. 1968: Outstanding Air Force Unit Award. may the good work go on and on! Postmaster General W. Marvin Watson re­ The year 1968 began with the 149th laying turns this month to private life with the claim to still another outstanding honor. warm good wishes of the National Associa­ Three of the unit's F-102 pilots attained rat­ tion of Letter Carriers and all its 210,000 ings of "Master of Air Defense", the highest members. We wish he had come earlier, and attainable in the Aerospace Defense Com­ POSTMASTER GENERAL WATSON stayed later. mand. Thus, the 149th became the first Air Guard unit ever to have within its ranks three of only eight such qualified pilots in HON. THADDEUS J. DULSKI the Air Force. OF NEW YORK IN FIGHTING TRIM Today, the unit commanded by Colonel IN THE HOUSE OF REPRESENTATIVES Charles A. Quist Jr., still maintains the never ending surveillance of the South Texas skies Thursday, January 16, 1969 HON. HENRY B. GONZALEZ as an integral link in the Aerospace Defense Mr. DULSKI. Mr. Speaker, Postmaster OF TEXAS Command. Twenty-four hours a day, the men and planes of the 149th proudly displaying General W. Marvin Watson's term of of­ IN THE HOUSE OF REPRESENTATIVES fice in the President's Cabinet expires the red-white and blue outstanding Air Force Thursday, January 16, 1969 unit citation, are ready, willing and able, and this weekend, and he will head back to assume any task demanded of them in the private life. Mr. GONZALEZ. Mr. Speaker, on Sat­ defense of our Nation. During his relatively short tenure at urday, January 11, 1969, at Kelly Air the head of our postal system, General Force Base in San Antonio, an outstand­ CITATION To ACCOMPANY THE AWARD OF THE Watson has dug into his job with enviable ing and memorable event took place. Am FORCE OUTSTANDING UNIT AWARD TO THE vigor and enthusiasm. First, the 149th Fighter Group, of the 149TH FIGHTER GROUP The 149th Fighter Group, Aerospace De­ An example of the respect and com­ Air National Guard was awarded the fense Command, distinguished itself by ex­ mendation which he has earned is evi­ Outstanding Air Force Unit Award. This ceptionally meritorious service from 1 Jan­ denced in an article in the January 1969 was no surprise to those of us who have uary 1967 to 15 June 1968. During this period, issue of the Postal Record, the official followed the work and heroic perform­ the members of the 149th Fighter Group dis­ journal of the National Association of ance of the 149th Fighter Group. played extreme dedication and outstanding Letter Carriers. Also, it was the occasion to inaugurate performance in the accomplishment of their NALC President James H. Rademacher the spanking brandnew building that mission. Every officer and airman acted deci­ sively and efiiciently in support of the defense has this to say: houses its headquarters. The story of this of the United States. The initiative, resource­ If the new Postmaster General does choose construction is a most interesting and fulness, and devotion to duty displayed by a model upon whom to fashion his perform­ valuable one. Using the in-house talents the personnel of the 149th Fighter Group ance, he would do well to consider his imme­ of its architects, engineers, and so forth, reflect great credit upon themselves and the diate predecessor, retiring Postmaster General that the fighter group counts among its . W. Marvin Watson. General Watson came to the Post Office members it has constructed a modern, from the White House, after a successful ca­ highly functional, and attractive edifice reer in private industry. When he took office, at a great saving. there were widespread rumors that he was Mr. Speaker, I include at this point a VIETNAM CASUALTIES unfriendly to labor. resume of the history of this patriotic As it turned out, the rumors were untrue and efficient group of American fighters HON. HARRY ·F. BYRD, JR. and unjust. Marvin Watson, during his nine and defenders: months in ofiice, proved himself to be an OF vmGINIA eminently fair man and a most competent HISTORICAL RESUME OF THE 149TH FIGHTER IN THE SENATE OF THE UNITED STATES administrator. If he had been given the time GROUP and a little more running room, he would The 149th Fighter Group, a direct descend­ Thursday, January 16, 1969 have made a record second to none. ant of the 396th Fighter Squadron, was re­ Mr. BYRD of Virginia. Mr. President, It may seem a little incongruous to com­ organized as the 182d Fighter Squadron in the U.S. casualty figures in Vietnam dur­ pare a devout and active Baptist to a Pope, 1947, and received federal recognition on but the comparison with the late, beloved October 6th of that year. Three years later, ing 1968 do not support the widespread John X.XIII is irresistible. the 182d was ordered to active duty in Korea. belief that there has been a reduction Like Pope John, Marvin Watson's appoint­ The first Air National Guard outfit to reach in Vietnam fighting. ment was thought to be an interim one. It combat and to down a MIG 15, the 182d holds Our combat casualties in 1968 exceeded was generally believed that his purpose the distinction of also being the first unit to the combined total for 1966 and 1967. would be merely to hold the office down until use inflight refueling techniques under com­ The figures are as follows: the end of the President's term and then bat conditions. In 1966: 5,008 deaths, 30,093 wounded. hand it over to his successor, reasonably On returning from the war zone, the 182d In 1967: 9,378 died in combat while intact. was back to the "leather and dust" of the Instead, Marvin Watson turned out to be F-51 Mustang, and the business of the 62,025 were wounded. very much of a doer, a mover and shaker. No citizen airman. In 1955, the unit transitioned In 1968: 14,592 killed, 92,820 wounded. Postmaster General ever took the job more back to jets with the acquisition of F-80 To state it another way, total U.S. seriously, or worked harder to improve the Shooting Star Fighters. Then in 1958, the casualties averaged 1,000 per week dur­ service and the condition of those who 182d moved to the faster, more complex ing the 2-year period 1966 and 1967. worked under his direction. F-86D, with a promise of bigger and better During 1968, the weekly average was "We have many reasons to be grateful that things to come. 1959 saw still another move; 2,000. Marvin Watson spent the last nine months a move to West Kelly AFB and the modern as chief of the Postal Establishment, but present 72 acre fac111ty. The United States has swrered more letter carriers will always be thankful ·for A new decade, a new aircraft, a new mission, than 59,000 casualties since the prelimi­ the masterful way in which he resolved the and another reorganization. It was in 1960 nary peace talks began in Paris on May ridiculous and potentially disastrous prob­ that the 182d Fighter Squadron was in­ 13. lem Of widespread labor-management im­ creased in size, becoming the 149th Fighter These facts, I feel, shouid be known passes throughout the field service. Group, assigned the mission of Air Defense and emphasized.